Daimler shares rise 7.4 percent

Article by Christian A., 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:

Comments

Recommended

It seems like a never-ending battle between the 2017 Honda Civic Type R and the VW Golf GTI Clubsport S when it comes to owning the Nürburging record. This story...
by - April 25, 2017
Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries