Daimler AG, the second-largest maker of luxury vehicles, posted an unexpected fourth-quarter loss and said it plans to cancel the annual dividend, sending the shares down the most in almost 11 months.
Spending on a reorganization at the truck division and charges stemming from disposals at the financial unit led to a $478 million quarterly loss, Daimler said today in a statement. Analysts had predicted a profit of $345.5 million.
A revamped E-Class Mercedes-Benz sedan isn't doing as well as Daimler hoped and faces tough competition from Bayerische Motoren Werke AG's new 5-Series car, which seems to be getting better reviews, said Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London. The firm lowered its recommendation on Daimler shares to sell from buy today.
Read Article