Daimler trades lower, plunges over 7%

Thursday, 23. May 2019 09:21

Daimler AG stock traded with losses early on Thursday, sinking 7.21% at 9:20 am CET, to trade at €47.16 per share after it announced a dividend of €3.25 per share, second highest in Daimler's history. The company held its general annual meeting on Wednesday where the company's chief executive officer Dieter Zetsche handed his post to Ola Kaellenius from Sweden.

At the meeting, Zetsche stated that all of the carmaker's costs will be under "scrutiny" following the disappointing first quarter financial results. Daimler's net profit was 9% lower compared to the first quarter last year, while its revenue remained virtually unchanged.

"Everything is under scrutiny: fixed and variable costs, material and personnel costs, investment projects, vertical integration and the product range," the former CEO stressed. Meanwhile, Kaellenius is expected to cut Daimler's administration costs by approximately 20% in an effort to meet its profit margin targets.

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Breaking the News / SS