Daimler loses $478 million in 2009, sees profit in 2010

(chinatrucks.com, Mar.08, 2010)German automaker Daimler AG lost 2.6 billion Euros, or $3.5 billion, in 2009 -- a hard year for its core Mercedes-Benz luxury car and heavy-truck businesses.

Daimler's results, which included a fourth-quarter loss of 352 million Euros, or $482 million, shocked financial analysts who anticipated a smaller loss.

Daimler shares plunged 9 percent at one point today in Frankfurt trading. But they recovered from their lows as investors took heart from the company's forecast to return to profit this year.

Dieter Zetsche, chairman of Daimler's management board, expects to report more than 2.3 billion Euros, or $3.1 billion, in earnings before interest and taxes this year.

Daimler lost 1.5 billion Euros, or $2 billion, before interest and taxes in 2009.

The company predicted higher sales across all the vehicle divisions, but was cautious about the outlook for the industry.

"On the one hand, the worst of the most severe economic crisis of the post-war period has now been passed," Daimler said in its earnings statement.

"On the other hand, there is very little hard evidence that a self-sustaining, lasting upswing has actually started. Although there are some signs of global economic recovery, there is no reason to assume that the crisis is over," it said.

Speaking in Stuttgart, where Daimler is based, Zetsche said the company struggled last year "with a great many challenges" but "laid the foundations" to recover strongly.

"We are emerging with plenty of torque," said Zetsche, whose contract as head of the management board was extended Wednesday by three years, to the end of 2013.

Last year, Daimler cut its global workforce to 256,407 from 273,216 at the end of 2008, to respond to falling demand for cars and trucks.

Its sales dropped 25 percent to 1.6 million cars, trucks, vans and buses in 2009, from 2.1 million a year earlier. Demand for luxury cars was hit unusually hard by a severe global recession that curtailed conspicuous consumption.

The truck business, which closely reflects economic and business conditions, also was hit hard in 2009.

Daimler shares finished down 4.7 percent at 31.50 Euros, or $42.87, valuing the manufacturer at $45 billion.

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