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Daimler posts $1.51B second-quarter loss

Published July 29, 2009


BERLIN–German auto and truck maker Daimler AG said Wednesday it lost euro1.06 billion ($1.51 billion) in the second quarter as sinking sales from the recession and charges related to its stake in Chrysler cut into profits. The result was better than analyst predictions, however.

Daimler, one of the world's leading luxury carmakers with brands including Mercedes-Benz, Maybach and Smart, said the loss in the April-June period compared with a profit of nearly euro1.3 billion a year earlier.

Analysts surveyed by Thomson Reuters had expected a net loss of euro1.5 billion

Sales fell 25 per cent to euro19.6 billion ($27.9 billion) in the quarter compared with euro26 billion last year, below the euro20 billion that analysts had forecast.

Stuttgart-based Daimler said sales across all of its units, including luxury cars, vans, trucks and buses. Other factors that weighed on the figure included its relinquishing a 19.9 per cent equity stake in Chrysler that took effect June 3. Daimler will make three payments of euro200 million each through 2011, according to the agreements, which resulted in euro387 million in expenses during the second quarter.

However, Daimler said the effects were partially offset by a transfer of charges in stock in aerospace concern EADS NV which saw it gain euro35 million.

The news pushed Daimler shares up 1.6 per cent to euro30.59 in Frankfurt trading.