Daimler 4Q Net Profit Soars but 2018 Guidance Cautious: Earnings Review
By Max Bernhard
Daimler AG (DAI.XE) reported fourth quarter and 2017 results before the market opened on Thursday. Here is how the results came in:
GUIDANCE: Daimler's 2018 guidance was more cautious than expected. The car maker said it expects earnings in the "magnitude of the previous year" and only slight revenue growth.
NET PROFIT: The maker of Mercedes-Benz cars reported net profit of EUR10.9 billion for the full year. Net profit for the quarter jumped 49% to EUR3.20 billion, just missing analyst expectations of EUR3.23 billion.
REVENUE: Revenue increased 6% to EUR43.59 billion, slightly undershooting expectations for EUR43.66 billion, according to a consensus estimate provided by FactSet.
WHAT WE WATCHED:
-SHIFT TO ELECTRIC: Research and development costs weighed on earnings, especially at Daimler's car division, and Daimler said it expects costs to hamper earnings for several years to come. The car maker plans to invest EUR10 billion to develop a next generation of electric cars. By 2022, it aims to bring 10 new electric vehicles to market, it said.
-DIVIDEND: Daimler proposed a dividend of EUR3.65, up from EUR3.25 a year ago, and slightly ahead of expectations. Analysts at Evercore ISI expected a EUR3.60 dividend.
-TRUCK BUSINESS: Sales and earnings at Daimler Trucks were fueled by higher demand in the NAFTA region and Latin America. The unit's fourth-quarter earnings before interest and taxes jumped 60% to EUR555 million, as revenue increased 13% to EUR9.54 billion for the unit.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
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February 01, 2018 09:52 ET (14:52 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.