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Thursday, October 23, 2008
Daimler Disappoints on Sales, Lowers 2008 Forecast
Kathryn Glass
FOXBusiness
Daimler AG (DAI), the German auto maker behind luxury brand, Mercedes-Benz and the Smart car, reported a drop in sales in North America and stated it will not live up to its full-year earnings forecast as a result of decreased demand, impacted by the financial crisis.
The company reported net income of 213 million euros (US$273.5 million), or 21 European cents per share, in the third quarter on Thursday. That compares to losses incurred during the third quarter of 2007 of 1.5 billion euros, or 1.47 euros per share, which includes results from the transaction with Chrysler.
Third-quarter revenue was down 7% to 23.8 billion euros. The company blamed the weak numbers on an “abrupt decline” in sales in North America and the major markets in Europe.
The company expects to earn 6 billion euros in 2008, rather than the 7 billion euros it anticipated earlier this year. Daimler will also suspend its buyback program at this time, falling short of its goal to buy back 10% of its shares.
Sales of the Mercedes-Benz brand fell by 8%, while sales of the fuel-efficient Smart car brand increased by 20%. The Stuttgart-based company’s truck division increased sales by 4% in the quarter.
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If you've seen TV footage of an active trading pit, you've probably noticed the atmosphere is uproarious and wild. The reason for all the shouting? Open outcry.
On exchange floors that use the open-outcry system, traders shout prices they want to sell while others yell back the price they want to buy at. They also use hand gestures to communicate with each other.
This system has been used for a long time, but is being replaced with modern technology. Some argue electronic exchanges can do the job faster and more accurately. One of the few exchanges that continue to use open outcry is the New York Mercantile Exchange.
