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The high-end automaker said the operating profitability of Mercedes-Benz Cars had fallen to 7.3 percent from 9.5 percent in the fourth quarter of 2017, and said its dividend would rise from 3.65 euros per share to 3.25 euros.
The title lost 2.32% to 51.68 euros around 9:15 GMT on the Frankfurt Stock Exchange, one of the largest declines in the Dax, which declined by 0.61% at the same time.
"Daimler has an urgent need to (take) efficiency measures," says ISI Evercore analyst Arndt Ellinghorst. "At the moment, the profitability of passenger cars and Mercedes-Benz trucks is lagging behind that of its peers."
Daimler said it was working on "countermeasures" in order to increase its profits but not being able to give details of possible cost reductions as these were still being developed.
In 2019, the margin of Mercedes-Benz Cars should be between 6% and 8% and those of Mercedes Vans between 5% and 7%, he added.
"With our forecast for Mercedes-Benz cars and vans, we are below our long-term margins targets, which we can not be satisfied with." Our goal is to return to our target of a margin of 8 from 10% to 2021 ", says the CEO, Dieter Zetsche, in a statement.
Daimler anticipates a slight increase in volume sales, sales and operating income for 2019.
BENEFITS BELOW EXPECTATIONS
Earnings before interest and taxes (EBIT) fell in the fourth quarter to 2.67 billion euros, while analysts expected to 2.92 billion.
Sales of Mercedes-Benz passenger cars rose 4% in the October-December period, but Mercedes-Benz explained that the rise in customs duties on cars imported into China from the United States and the problems encountered in the delivery of diesel models had weighed on demand and prices.
In 2018, Mercedes-Benz exported about 30,000 SUV GLE and GLS from the United States to China. Daimler does not currently plan to manufacture these models in China to mitigate the impact of tariffs, Dieter Zetsche said.
Spending on research and development rose 4.5% to 9.1 billion euros last year, as the automaker prepares to launch its first all-electric SUV this year.
In 2018, Mercedes-Benz became the best-selling luxury brand with 2.31 million new vehicle registrations, ahead of BMW (2.12 million) and Audi (1.81 million).
(Catherine Mallebay-Vacqueror for the French service, edited by Bertrand Boucey.)
by Edward Taylor
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