Daimler Set to Pay 'Healthy' Dividend, CFO Says
STUTTGART - Daimler could pay investors a dividend for this year nearly twice as high as that distributed for 2008, the last time the luxury carmaker returned cash to shareholders.
"Investors can expect a good, healthy dividend -- something that will give them cause to be pleased again," Chief Financial Officer Bodo Uebber told Reuters in an interview, reaffirming Daimler's forecast of an operating profit of 6 billion euros ($8.1 billion) for 2010.
"I feel very comfortable" with the current analyst estimates for a dividend of 1.15 euros per share on average, he said.
Daimler scrapped the dividend for last year in a surprise move that sent shares tumbling on the day, but promised this was an "exception" and would not be repeated.
Uebber said the company's ambition was to exceed its operating profit target by a "bit", and dismissed fears about a downturn in the global economy.
"From today's perspective judging by the current economic indicators, I do not expect a double dip, even if the present conditions in the USA are more difficult than before," Uebber said.
Attempts by the Chinese government to cool down overheating growth would lead to a soft landing for the country's economy, he added.
Should demand prove resilient, this could help Daimler with its borrowing costs.
"The prerequisite for a single 'A' rating could be fulfilled starting next year with stable, growing markets," he said.
Daimler itself expects to be more productive again with the funds it employs, easily generating a higher return this year than those otherwise generally available on capital markets.
"At the current consensus of 3.60 euros earnings per share, we should earn far more than our cost of capital," Uebber said.
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