Daimler posts Q4 loss, cancels dividend

Daimler AG Thursday posted an unexpected net loss in the fourth quarter and scrapped its full-year dividend, sending its shares 6.9% lower. The German car and truck maker, however, gave an upbeat outlook for 2010.

"The sole reason for [not paying a dividend] is last year's weak business development; it is not related to our expectations for unit sales and earnings in 2010," Daimler Chief Financial Officer Bodo Uebber said in a statement. "We assume that we will pay a dividend again for this year and the coming years," he added.

Daimler, the world's second-largest maker of premium cars by sales after BMW AG and the world's biggest manufacturer of trucks, posted a fourth-quarter net loss of €352 million ($479 million) and a full-year net loss of €2.64 billion. Investors had expected Daimler to post strong fourth-quarter figures and pay a dividend despite a full-year loss.

Daimler's earnings follow an announcement late Wednesday renewing Chief Executive Dieter Zetsche's contract until Dec. 31, 2013.

By midday in Frankfurt, Daimler shares traded 6.9% lower, making it the biggest decliner in the blue-chip DAX index, which traded roughly flat.

Investors in recent weeks have been shifting back to premium auto makers because the segment's recovery has gained traction, fueled by rising demand in China.

Daimler has been among the top picks for many analysts due to solid product momentum, its exposure to a potential U.S. market recovery and its development in emerging markets. At the same time, global truck markets have started to stabilize.

Adjusted earnings before interest and tax, or Ebit, from ongoing operations, a metric closely watched by investors, jumped to €599 million from about €280 million in the same period a year ago.

Analysts had expected net profit of €277 million and adjusted Ebit of €594 million in the fourth quarter.

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