Daimler delivers strong earnings and upbeat outlook
The company’s shares rallied 5,5% following the report
Stocks impacted: Daimler AG (DAI)
The German car maker's preliminary figures for the third quarter came in above market consensus, sending the company’s stocks higher on Friday. Daimler reported preliminary earnings before interest and taxes of 3.07 billion euros ($3.6 billion), against a 2.49-billion-euro consensus forecast provided by the company. Earnings before interest and taxes for the Mercedes-Benz Cars & Vans division was 2.12 billion euro, against a 1.78-billion-euro forecast. The firm said it expects a strong remainder of 2020 but added that its positive expectations for the fourth quarter are under the assumption that no further lockdowns are implemented to curb the spread of the coronavirus. The company will provide an updated full-year guidance together with quarterly results on October 23. As a reminder, earlier this month, Daimler said it will cut fixed costs, capex and research and development spending at Mercedes-Benz by more than 20% by 2025 as part of a strategy overhaul. The company’s shares rallied 5,5% following the report.
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