Daimler shares rise 7.4 percent

Article by Christian Andrei, on August 29, 2010

As soon as Daimler AG lifted profit forecasts for its car and truck units, it went up to its highest price in 1.5 years in Frankfurt trading. Daimler, the world's second-biggest luxury carmaker, revealed that Mercedes-Benz Cars will post operating profit of 2.5 billion euros ($3.4 billion) to 3 billion euros this year.

Mercedes-Benz, which is Daimler's biggest unit, produces Mercedes, Smart, and Maybach passenger cars. Last February, Daimler predicted that this unit would earn over 1.5 billion euros. CEO Dieter Zetsche aims to at least get to the level that luxury market leader BMW AG is at.

In the first quarter on sales of its high-end E-Class and S-Class vehicles, Daimler posted better-than-expected earnings as well as a "favorable overall cost position."

Mike Tyndall, a European autos specialist with Nomura Securities in London, said that this may be good news for Daimler but that this shouldn't be the way of how to communicate with the market. Daimler increased as much as 7.9% to 39.17 euros, its highest price since Sept. 26, 2008.

Daimler closed the day up 7.4% to 39 euros. Its shares fell as much as 9.4% on Feb. 18 after its announcement about an unexpected fourth-quarter loss, a dividend cancellation and a conservative profit outlook.

Meanwhile, its trucks division is expected to make a profit of 500 million euros to 700 million euros this year. Previously, Daimler aimed for an operating profit of about 200 million euros for the unit, which produces Mercedes, Freightliner and Fuso heavy- duty vehicles.

Topics: daimler, shares

If you liked the article, share on:


Login or Create new account to add a comment!


Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016
Mini has just provided the world with a preview of its first hybrid model that employs petrol-electric power to propel its wheels. Derived from the second generation of the Mini...
by - October 20, 2016
For the second time in three years, German driver Marco Wittmann of BMW Team RMG reached the summit in the DTM Drivers’ Championship. Even though Wittmann only secured a fourth...
by - October 20, 2016
The recent motor show has given us a lot of promising vehicles to look forward to for the time being. After we caught a glimpse of the future of motoring,...
by - October 19, 2016
Almost immediately after its launch, car designers have rendered their own adaptations of the new BMW 5-Series (G30). It’s just how it goes. Most folks with very creative minds couldn’t...
by - October 19, 2016