Daimler rocked by massive loss, scraps dividend

City A.M. Reporter
German carmaker Daimler swung to a net loss of €2.6bn (£2.26bn) for 2009 and yesterday scrapped its dividend for the first time in 14 years.

Daimler, which owns Mercedes Benz and is the world’s largest truck manufacturer, put the loss down to a fall in vehicle sales across all its business units due to the global downturn.

The group sold 1.6m vehicles in 2009, compared with 2.1m in 2008. The group made a net profit of €1.4bn in 2009.

Chief executive Dieter Zetsche called the suspension of its dividend an “exception” and said Daimler would make a payout for 2010, when it forecasts a rebound at its premium car arm Mercedes will help the group post over €2.3bn for the full year.

Daimler chairman Dieter Zetsche, said: “Last year brought many great challenges also for Daimler. But as the year progressed, we made the group significantly more efficient.”