Daimler Stuns Investors With A $478M Loss, Cancels Dividend

Daimler Stuns Investors With A $478M Loss, Cancels Dividend

Daimler AG, the second-largest maker of luxury vehicles, posted an unexpected fourth-quarter loss and said it plans to cancel the annual dividend, sending the shares down the most in almost 11 months.

Spending on a reorganization at the truck division and charges stemming from disposals at the financial unit led to a $478 million quarterly loss, Daimler said today in a statement. Analysts had predicted a profit of $345.5 million.

A revamped E-Class Mercedes-Benz sedan isn't doing as well as Daimler hoped and faces tough competition from Bayerische Motoren Werke AG's new 5-Series car, which seems to be getting better reviews, said Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London. The firm lowered its recommendation on Daimler shares to sell from buy today.


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pennfootballpennfootball - 2/18/2010 11:53:25 AM
-2 Boost
Looks like the pointed star has become a tilted, tarnished and rusted Halo of a once great brand that was number 1 on JD power in the 1980's. The kingdom has crumbled, it bought Chrysler and has been devastated for years since plagued with poor quality and higher and higher prices with less markup possible.


WillisWillis - 2/18/2010 2:00:05 PM
+3 Boost
Their quality has been improving ever since. It's safe to say that a new MB product is a high quality car. I have no second thoughts about purchasing another product from them based on my personal experience (W203 C230 V6 owner here) and those of my friends. I think the media likes to overblow things just like they're doing with Toyota at the moment.


theman440theman440 - 2/18/2010 6:27:49 PM
+1 Boost
DO NOT assume that Chrysler is the reason for what ails Daimler. Chrysler was in great shape before Daimler came in and pillaged them.


kpaxxkpaxx - 2/18/2010 1:19:06 PM
0 Boost
This company needs some adjustment before it can see profitability. They need to focus on their core products and make sure they are competitive and at the same time make sure the business operations are clean and tidy.


BondMI6BondMI6 - 2/18/2010 1:53:32 PM
0 Boost
Ouch.

And they just signed Dr.Z through 2013.......lol


david999david999 - 2/18/2010 8:34:55 PM
-1 Boost

A little surprising this news, but Mercedes will soldier on.


bfghemicudabfghemicuda - 2/19/2010 11:45:40 AM
+1 Boost
Theman440 is correct, Merc was in trouble when Diamler did a hostile takeover of Chrysler. Chrysler was in good shape with billions in the bank. Diamler came in and called it a " merger" when in fact it was a manipulation. It was Chrysler profitts that were put into Merc to bring there quality back, if that even happened at all. That is why the Chrysler lineup [interiors] were cheapened along with other bad decisions. Now Diamler is in trouble again. Who will they suck the life out of next?
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