Daimler predicted on Thursday that India, China and Russia would provide the main impulse for growth in the automotive sector in 2008, in the face of flat demand in Europe and a depressed North American market as a result of falling house prices.
Posting net profits of 3.985 billion euros ($5.8 billion) for 2007, up from 3.783 billion euros ($5.52 billion) in 2006, Daimler said it expected a moderate increase in revenue from the 99.4 billion ($145 billion) euros recorded in 2007.
"From today's perspective, all operations should contribute to this growth. The regional focus of expansion is likely to be mainly in the growth markets of Asia and Eastern Europe," it said.
The company announced an increase in its dividend to 2 euros from 1.50 euros currently.
Operating profit, measured as earnings before interest and tax (EBIT), rose sharply to 8.7 billion euros ($12.7 billion) from 5 billion euros ($7.3 billion). A charge of 2.2 billion was booked to selling off the Chrysler division during the year.
Daimler said it anticipated margins in its core Mercedes-Benz Cars division to rise to 10 per cent by 2010, from 9 per cent currently. The division accounted for 4.75 billion euros in EBIT in 2007.
Margins in the Daimler Trucks division were expected to rise to 8 per cent by 2010, from 7 per cent currently. The division accounted for 2.12 billion euros in EBIT last year.
The company's share price rose on the news to hit a high of 55.85 euros, before falling back to 54.28, one per cent up on the opening.
Like other German auto manufacturers, Daimler has suffered from the rise of the euro against other major currencies, which makes its vehicles more expensive in foreign markets, and from a general economic slowdown worldwide.
Daimler's bus division could likely see sales stagnate however, the company acknowledged.
Posting net profits of 3.985 billion euros ($5.8 billion) for 2007, up from 3.783 billion euros ($5.52 billion) in 2006, Daimler said it expected a moderate increase in revenue from the 99.4 billion ($145 billion) euros recorded in 2007.
"From today's perspective, all operations should contribute to this growth. The regional focus of expansion is likely to be mainly in the growth markets of Asia and Eastern Europe," it said.
The company announced an increase in its dividend to 2 euros from 1.50 euros currently.
Operating profit, measured as earnings before interest and tax (EBIT), rose sharply to 8.7 billion euros ($12.7 billion) from 5 billion euros ($7.3 billion). A charge of 2.2 billion was booked to selling off the Chrysler division during the year.
Daimler said it anticipated margins in its core Mercedes-Benz Cars division to rise to 10 per cent by 2010, from 9 per cent currently. The division accounted for 4.75 billion euros in EBIT in 2007.
Margins in the Daimler Trucks division were expected to rise to 8 per cent by 2010, from 7 per cent currently. The division accounted for 2.12 billion euros in EBIT last year.
The company's share price rose on the news to hit a high of 55.85 euros, before falling back to 54.28, one per cent up on the opening.
Like other German auto manufacturers, Daimler has suffered from the rise of the euro against other major currencies, which makes its vehicles more expensive in foreign markets, and from a general economic slowdown worldwide.
Daimler's bus division could likely see sales stagnate however, the company acknowledged.
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