Daimler’s revenue slips 11% in 2020 amidst the COVID-19 disruptions
- Daimler’s revenue slips 11% in 2020 amidst the COVID-19 disruptions.
- The automaker expects semiconductor shortage to weigh on sales in Q1.
- The German carmaker proposes £1.17 per share of dividend for 2020.
Daimler AG (ETR: DAI) proposed to raise its dividend for 2020 on Thursday as full-year net profit came in better than the previous year.
Daimler closed almost flat on average in the stock market on Thursday. It is now trading at a per-share price of £57.88. If you want to invest in the stock market, you’ll need a stockbroker – here’s a list of the top few to make selection easier for you.
Daimler reports £3.14 billion of full-year net profit
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Daimler said that its net profit in 2020 printed at £3.14 billion versus the year-ago figure of a much lower £2.06 billion. Its profit after tax stood at £3.11 billion in the fourth quarter. In the comparable period of last year, the German multinational had recorded £9.52 million of loss.
In January, Daimler Trucks North America faced a £21.94 million civil penalty from the U.S. NHTSA.
At £133.53 billion, Daimler’s full-year revenue slid 11% in 2020. Its revenue in the fourth quarter, however, registered at £40.34 billion or 1% lower on a year over year basis. Other prominent figures in the premium carmaker’s financial update on Thursday include £5.71 billion of earnings before interest and taxes and £7.48 billion of adjusted EBIT in 2020.
Daimler performed fairly upbeat in the stock market last year with an annual gain of a little under 20%. At the time of writing, it is valued at £61.83 billion and has a price to earnings ratio of 2,168.23.
Daimler proposes £1.17 per share of dividend for 2020
Daimler proposed £1.17 per share of dividend for 2020 on Thursday versus 78 pence per share in 2019 and £2.81 per share in 2018. In 2021, the Stuttgart-based company expects its EBIT and revenue to see significant growth compared to the previous year. In the first quarter, however, semiconductor shortage, as per Daimler, is likely to weigh on sales.
On 3rd February, Daimler expressed plans of creating a separate publicly-traded company for its truck and bus division before the start of 2022. CEO Ola Kallenius commented on the financial update on Thursday and said:
“In addition, we have achieved a significant margin improvement based on strong product mix and pricing – especially in the second half of the year. We proved our ability to generate substantial cash flow and to drive the ongoing transformation on our own – even under the adverse circumstances of a pandemic.”