Daimler Is Rolling In Money
Who says an automaker needs at least 5 million units per year to survive? Daimler in Germany made $6.7 billion EBIT on sales of just 989,386 units in the first half year. Unlike other car companies who are sitting on such a big pile of accrued losses that no taxes will be due in the foreseeable future, Daimler made a healthy contribution to the government’s finances. Even after tax, the company is left with $4.2 billion for the first half year. This according to emailed statements by Daimler.
According to this statement, the second quarter was “among the best in the Group’s entire history.” His mustache trembling with excitement, Daimler CEO Zetsche said:
“With our excellent first half of the year, we are fully on schedule to turn 2011 into one of the most successful years in our long corporate history. We now assume that Group EBIT will develop more positively than we previously expected and will very significantly exceed the level of 2010.”
meanwhile Ally Bank reduces lease admin fees for a week on GM leases and select GM Card holders get a bump on their earnings. profit vs struggle...the difference is management.
They can start making back the $45 billion (or was it $60b?)they lost on Chrysler. It still makes my head spin that they can get it so wrong thinking the synergies were there and that the two different corporate cultures could be persuaded to actually collaborate with that goal in mind. "Mr. Zetsche insisted that Chrysler did not drain cash from Mercedes. Despite its recent losses, it generated nearly $15 billion in cumulative profits during the years it was owned by Daimler. But analysts said Daimler could have found better uses for the cash it poured into Chrysler. “They spent about $60 billion acquiring, restructuring and investing in Chrysler over the last nine years,” Mr. Jonas of Morgan Stanley said. “Just think where the next $60 billion could go if it was invested properly.” " http://www.nytimes.com/2007/05/15/business/worldbusiness/15daimler.html
If their EBIT is going to be that positive, Dieter ought to blow the dustballs off of the check book and pay someone to trim that 'stache of his. He looks like a friggin' Fuller Brush salesman.
Yeah, so? With all their trucks and missiles they're still pathetically chasing numbers with those Bavarian barbarians.