Mercedes Benz Trucks Boost Sales for Daimler

Daimler, the owner of the Mercedes benz trucks brand, has announced financial results that see the company back in profit after its huge losses in 2009. The manufacturer, who also make their own brand of luxury cars as well as owning Mercedes benz trucks, is the world's leading maker of heavy trucks.

The company gave a positive outlook for 2011 based on its latest figures, which saw Daimler make a net profit of $6.3 billion in 2010. It posted losses of $3.5 billion for 2009. 2009's quarter four figures saw a loss of $470 million, compared to 2010's quarter four result of a $1.5 billion profit. Daimler are proposing a dividend of $2.50 per share, in a statement released by the company this week.

Daimler did not pay a dividend in 2009.

Investors were not convinced by the group's upbeat tone, however, sending its shares plummeting in afternoon Frankfurt trading, although profit-taking might explain some of the sell-off.

"Daimler managed an excellent comeback last year," chairman Dieter Zetsche said in the statement. Special one off benefits from last year included the sale of Daimler's stake in India's Tata Motors. This brought a boost of $350 million to Daimler's bottom line.

The German car and truck giant posted EBIT (earning before interest and tax) of $9.7 billion, from a $2 billion loss in 2009.

Whilst this topped the company's own estimates of a $9.3 billion profit, it significantly missed analyst expectations. Dow Jones Newswires reported that analysts were predicting a $10.3 billion EBIT, which may explain share value plummeting.

"The goal for 2011 is an EBIT clearly superior to that of 2010," Zetsche told a media conference in Stuttgart.

Daimler also expects an increase in sales, though it did not give a detailed figure. The group was boosted by a recovery of all its major markets last year, and sold 1.9 million vehicles. Group revenue gained 24 per cent to $130 billion, thanks notably to rising Mercedes benz trucks for sale profits in China and the U.S.