FX.co ★ Mercedes becomes world beater

The world’s largest car manufacturer once again has proved its superiority. Daimler AG reported its net profit of €8.7 billion in 2013. Higher than ever before in the company’s history, the figure came as a surprise even to inveterate optimists. Consequently, the company sold a total of more than 2.35 million units. It is noteworthy that its net profit fell 36 percent to €1.68 billion in Q4 2013 versus €2.6 billion in the same period last year. However, these temporary difficulties did not stop the German luxury carmaker from beating analysts’ expectations. This was mainly due to an increase in Mercedes-Benz Cars sales, its major division. It accounts for 70 percent of the company’s net profit. During the past months, the division’s return on sales rose to 8%. Given that, the company’s management board announced a dividend payment of €2.25 per share. That is 5 eurocents more than in 2012. Thus, the amount to pay will come in at €2.4 billion or 36% of net profit. "The proposed distribution represents the highest dividend we ever paid so far at Daimler AG", stated Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Daimler Financial Services. After the figures were published, the company’s shares soared 4% at Xetra. However, the report contains no information on Russian truckmaker Kamaz where Daimler has a 15% stake. At the same time, sources familiar with the situation say the plan is afoot to increase the stake in the project and the process is currently being negotiated. As for the outlook for 2014, the report reads “significant growth in unit sales and revenue; Group EBIT from the ongoing business will increase...more”.