Remember meForgot password?
    Log in with Twitter

article imageDaimler takes $1.51 bn Q2 loss

By Bob Ewing     Jul 29, 2009 in Business
Daimler AG posted a €1.06 billion ($1.51 billion) loss in the second quarter as the recession hurt car and truck sales.
During the same period, the company took charges related to its stake in Chrysler.
The company’s truck business which is the world’s largest by sales saw unit sales plunge 60%; however, the quarterly result was better than analyst predictions.
The company's share rose at the same time.
A net loss of €1.5 billion was analysts had predicted.
The loss in the April-June period, which was the third quarterly loss in a row, stands in contrast to a profit of nearly €1.3 billion a year earlier.
Daimler anticipates a “gradual improvement” in its operating profit in the coming months and the company's shares rose nearly 5.4% to €31.68 in Frankfurt trading.
Sales across all of the company's units, including luxury cars, vans, trucks and buses slid 31% in second quarter compared to last year with just 391,500 sold worldwide.
By year end, total sales were likely to “decrease significantly” from last year when it sold 2.1 million vehicles.
Another contributing factor to the drop is due to the company's relinquishing a 19.9% equity stake in Chrysler Group LLC effective 3 June.
Daimler’s efforts to cut costs and optimize operations showed positive effects during the April-June period and first six months.
The company has established, for example, shorter work schedules for some of its production to respond to the lower demand during the first half of the year.
More about Daimler, Second quarter, Loss
Latest News
Top News