Daimler Raises Dividend After 2020 Profit Increase -- Update
--Daimler upbeat on outlook for the year after profit rise in
--Proposed dividend is higher than 2019 payout
--Daimler shares traded higher on the news
By Kim Richters
Daimler AG on Thursday posted increased net profit for 2020,
while proposing a higher dividend and saying it was confident for
the current year.
Net profit for 2020 rose to 3.63 billion euros ($4.37 billion)
from EUR2.38 billion a year earlier, the German premium car maker
said. Net profit in the fourth quarter alone was EUR3.49 billion,
compared with a loss of EUR109 million in the same period
Revenue for the full year fell 11% to EUR154.31 billion, while
quarterly revenue came in 1% lower at EUR46.62 billion.
Daimler had already released some preliminary figures for 2020,
including earnings before interest and taxes that were up more than
50% on-year and stood at EUR6.60 billion.
Cost and cash-saving steps as well as strong performances across
divisions boosted earnings, the company said.
It has now proposed a dividend of EUR1.35 a share for 2020, up
from EUR0.90 a share for 2019. In 2018, the dividend was
Looking ahead, Daimler expects group sales, revenues and EBIT in
2021 to be significantly above the prior-year level. For unit sales
this would mean an increase of at least 7.5%.
The effect of the semiconductor shortage the industry is
currently facing will be mainly felt on sales in the first quarter,
Daimler said, but it expects to recover lost production volume by
"We are confident that we can maintain positive momentum if
current market conditions prevail, accelerating our strategic plans
and further enhancing our financial robustness," said Daimler Chief
Executive Ola Kallenius.
At 1049 GMT, shares in Daimler traded 1.2% higher at
Write to Kim Richters at firstname.lastname@example.org
(END) Dow Jones Newswires
February 18, 2021 06:30 ET (11:30 GMT)
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