German car giant Daimler AG (DDAIF.PK) Thursday said fourth-quarter net profit declined 36 percent from last year, while revenues advanced 8 percent with increases in sales of Mercedes-Benz Cars and Daimler Trucks. The firm proposed higher dividend and expects renewed growth in 2014.
Net profit fell to 1.68 billion euros ($2.27 billion) from last year's 2.6 billion euros. The firm recorded a gain last year from the sale of a stake in EADS.
Group revenue rose 8 percent to 32.09 billion euros from 29.83 billion euros.
Revenues from Mercedes-Benz Cars advanced 8 percent to 17.352 billion euros, while that from Daimler Trucks jumped 9 percent to 8.502 billion euros.
Earnings before interest and taxes or EBIT fell 4 percent to 2.425 billion euros. EBIT from ongoing business amounted to 2.53 billion euros, while it totaled 1.74 billion euros last year.
EBIT jumped 53 percent to 1.305 billion euros in Mercedes-Benz Cars, while Daimler Trucks saw a 92 percent surge at 565 million euros. In Mercedes-Benz Vans also, EBIT soared 92 percent to 194 million euros.
Daimler Group unit sales rose 9 percent to 651,326. Sales of Mercedes-Benz Cars were 7 percent higher and Daimler Trucks advanced unit sales by 19 percent.
The Board of Management and the Supervisory Board plans to propose the distribution of a dividend of 2.25 euros per share, up from last year's 2.20 euros per share. The proposed distribution is the highest dividend the company has ever paid.
For the year, the company's net profit increased 28 percent to 8.720 billion euros from 6.830 billion euros. EBIT was 23 percent higher at 10.815 billion euros, while annual revenue rose 3 percent to 117.98 billion euros.
Daimler said it posted record levels of unit sales, revenue, EBIT and net profit for the year. The company expects renewed growth in 2014, benefiting from its strong product portfolio and ongoing investment in production and new technologies as well as the expected market developments.
Daimler expects to achieve further significant growth in total unit sales in 2014 and assumes that group revenue will grow significantly in 2014.
The expected revenue growth is likely to be driven by all divisions, with Daimler Trucks and Mercedes-Benz Cars probably delivering the biggest contributions in absolute terms. Daimler expects above-average growth rates in the emerging markets and North America.
The company also expects group EBIT from the ongoing business to increase significantly in 2014.
The stock is gaining 4.01 percent at 63.32 euros.
by RTTNews Staff Writer
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