LONDON—Daimler AG reported a higher quarterly profit on Friday despite a 30 percent drop in Mercedes-Benz unit sales due to a global semiconductor chip shortage, as it focused on more profitable luxury cars and cut costs, and said it should meet its 2021 profit targets. The German premium carmaker said it expects chip supplies to improve in the fourth quarter. It said the shortage should continue in 2022 but should improve compared to 2021. The company has previously warned the global chip crunch could last into 2023. “This (chip) issue will continue to be a top priority for us moving forward,” Chief Financial Officer Harald Wilhelm told analysts during a conference call. Wilhelm also told analysts Daimler is transferring development and manufacturing activities for compact and midsized combustion-engine transmissions to contract manufacturer and auto parts supplier Magna, so the German carmaker can focus on electrifying its model range. “The future …