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Mercedes Stunned Investors With Profit Warning

Agent009 submitted on 7/30/2008 Official Bell & Ross Timestamp: 4:22:43 PM

29 user comments | Category: Misc News | Source: | SOURCE: www.businessweek.com

German carmaker Daimler  stunned investors with a profit warning on July 24, sending company shares into a nosedive and illustrating the dramatic changes forced on the auto industry by high fuel prices and a cooling world economy.

Shares of the maker of Mercedes-Benz cars and trucks plunged more than 10% in Frankfurt after the company revised its profit outlook. Operating profit for the year will be more than $11 billion instead of the $12 billion-plus forecast earlier, the company said. "The going has gotten tougher," Daimler Chief Executive Dieter Zetsche told analysts and reporters on a conference call. "We can no longer completely compensate." Daimler also reported a 2% decline in operating profit for the second quarter, to $3.2 billion. Sales rose 6%, to $40 billion.



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Mercedes Stunned Investors With Profit Warning

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Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

Porschinator

Well when you build cars that can only run HIGH Octane fuel sales can dive in when fuel prices hit the roof. Hope this is a wake up call for MB.

— Porschinator (View Profile)

Posted on 7/30/2008 4:39:42 PM | reply to this comment | Votes: 6   

EnnNorak

The real problem is that MB's higher models are grossly overpriced and cars like the Audi A6 beat the pants off the C-class in value. I love hi octane fuel because my engine will not knock when I goose it in the Rockies going up hill. Maybe the gas companies are screwing hi octane users disproportionately.

— EnnNorak (View Profile)

Posted on 7/30/2008 8:08:09 PM | | Votes: -3   

aarononymous

Mercedes engines don't have knock sensors & electronically controlled fuel-injection?

— aarononymous (View Profile)

Posted on 7/30/2008 8:34:58 PM | | Votes: 4   

enthusiastx11

actually, mercedes issues have more to do with exchange rates. the US is still their largest market and given the weakness of the dollar, they're probably losing money in the states.

oh--and they still made $11billion in operation profit instead of $12billion.

— enthusiastx11 (View Profile)

Posted on 7/31/2008 7:10:29 PM | | Votes: 1   

C63AMG

Wke up call? They made $11 BILLION

— C63AMG (View Profile)

Posted on 8/2/2008 9:01:29 PM | | Votes: 1   

C63AMG

Is that why MB sales were up 11% in July and Audi were DOWN 4%?

— C63AMG (View Profile)

Posted on 8/2/2008 9:37:26 PM | | Votes: 1   

chewy

I am no fan of those two, but did they really force Americans to buy houses when they couldn't afford them. I doubt they are responsible for all the problems in the world.

VW was able to increase profits so it's all possible

— chewy (View Profile)

Posted on 7/30/2008 5:18:52 PM | reply to this comment | Votes: 7   

EnnNorak

I'm a pro-American Canadian, a republican at heart but 100% Obama supporter this time around. I do believe that the U.S. economy is such a big factor in the global scheme of things that, when America sneezes, the whole world catches a cold. The money masters that run the big international financial institutions are to blame and they are now paying the price with huge ongoing writedowns.

— EnnNorak (View Profile)

Posted on 7/30/2008 8:14:14 PM | reply to this comment | Votes: 3   

EL34

I'm a huge fan of Bush and Cheney.

What was it Obama Boy did in Germany?

Instead of paying a visit to the injured troops he went and played B-Ball.

Maybe he needs to tryout for the NBA and hanging out with lowlife rapper buddies.

— EL34 (View Profile)

Posted on 7/30/2008 10:03:40 PM | reply to this comment | Votes: -10   

0to60

EL, how bout you go hunting with dick cheney! But make sure this time he shoots to kill

— 0to60 (View Profile)

Posted on 7/30/2008 11:57:46 PM | reply to this comment | Votes: 9   

0to60

Oh and tell him to bring your bush along too. You would be a Bush supporter.

— 0to60 (View Profile)

Posted on 7/30/2008 11:59:59 PM | reply to this comment | Votes: 7   

quizz

The current credit collapse has nothing to do with the current administration and everything to do with global greed during the credit boom of 2004-2006. Swiss, German, American investment banks ALL demanded subprime collateral mortgage obligations (CMO) to market to their investors and the market obliged. There is no way any government could have seen this coming because everything was done behind the scenes in Wall Street. Sure the Fed didn't like it, but it had no way of understanding the extent of these crazy lending practices. The amount of fraud and lender negligence was unbelievable.

Blame Bush/Cheney for the war, but the credit crisis was a result of pure human greed all perpetuated by Wall Street.

— quizz (View Profile)

Posted on 7/30/2008 5:26:49 PM | reply to this comment | Votes: 5   

EnnNorak

I would blame the government for lack of proper oversight and lack of vision in setting rules that prevent that sort of thing. There is no doubt that the money masters have abused the free enterprise system.

— EnnNorak (View Profile)

Posted on 7/30/2008 8:16:40 PM | | Votes: 5   

0to60

A month or so ago people on here were shouting that this TRUE Luxury segment would not suffer due to MB's profits during their last release. Where are those people now.

— 0to60 (View Profile)

Posted on 7/31/2008 12:02:13 AM | reply to this comment | Votes: 3   

xj13

MB #1.

— xj13 (View Profile)

Posted on 7/31/2008 2:18:54 AM | reply to this comment | Votes: 2   

silver1

Lexus#1

— silver1 (View Profile)

Posted on 7/31/2008 5:56:15 AM | | Votes: -10   

PrancingHorse

All you idiots professing your love for Democrats,Republicans please google a few words,illuminati,bilderberger group,trillateral commission,council of rome,false flag operations and you will slowly learn all these people are on the same side and all have genetically linked bloodlines dating back to European royal families.They divide and conquer you dumb sheeple and make you fight amongst yourselves.Probably wasting my time with you idiots anyway.

— PrancingHorse (View Profile)

Posted on 7/31/2008 5:41:54 AM | reply to this comment | Votes: -1   

bmwman1963

Ok Prancie Dancie, I think it is time to go back on your meds.

— bmwman1963 (View Profile)

Posted on 7/31/2008 9:35:47 AM | | Votes: 2   

M53R

I read an article about how bush, Hilary, and Obama have a connected bloodline. Interestimg.

— M53R (View Profile)

Posted on 7/31/2008 11:27:35 AM | | Votes: 1   

0to60

I thought it was Obama and Cheney

— 0to60 (View Profile)

Posted on 7/31/2008 12:06:29 PM | | Votes: 0   

Htay7500

I think politicians have no brains.

— Htay7500 (View Profile)

Posted on 7/31/2008 1:06:20 PM | reply to this comment | Votes: 2   

huu76

EL34,
If stupid knowing nothing do it because it's 'in' Americans vote Mr. Hope and Hype into office, China will declare a national holiday. Obama will turn the US into the world's bitch, just like Bubba Clinton.

I can see America outsourcing the B-2 and NMD to China just so Mr. 'Black' can score points with the 'peace at all costs American hating America' crowd.

Not to mention oil will double when he hands Iraq over to China.

— huu76 (View Profile)

Posted on 7/31/2008 6:21:11 PM | reply to this comment | Votes: 1   

enthusiastx11

i don't even know what any of this blather means...

— enthusiastx11 (View Profile)

Posted on 7/31/2008 7:11:45 PM | reply to this comment | Votes: 1   

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