Daimler cuts dividend on lower earnings

Tuesday, 11. February 2020 17:00

Following its earnings report on Tuesday, announcing a 64% drop in its 2019 net profit, Daimler AG said it slashed its dividend to €0.90 a share, down from €3.25 a share in 2018.

Earlier today, the German auto giant reported that its revenue totaled €172.7 billion in the full fiscal 2019, representing an increase of 3% compared to the previous year, but its net profit amounted to €2.7 billion in 2019, declining by 64% in comparison to results from 2018. Also, earnings per share dropped 67% from €6.78 recorded in 2018 to €2.22 in 2019.

At the same time, Daimler announced it would need to cut administrative and other personnel costs amid multibillion charges related to diesel probes and legal proceedings, as well as huge costs that the Stuttgart-based company is facing toward the development of electric and driverless vehicles.

In an afternoon trading in Frankfurt, Daimler stock was flat going for €43.06 at 16:48 pm CET on Tuesday.

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Author:
Breaking the News / BJ