Daimler Truck shares climb on Frankfurt market debut By Reuters
© Reuters. The graphic of the German share index DAX is pictured on the stock exchange in Frankfurt, Germany, 10 December 2021. Daimler Truck will start trading in Frankfurt after the spin-off from Daimler, which will be renamed Mercedes-Benz and retain 35% of the shares
By Victoria Waldersee and Ilona Wissenbach
FRANKFURT (Reuters) shares in Daimler (OTC 🙂 Truck made its market debut in Frankfurt on Friday after the long-awaited spin-off of the commercial vehicle manufacturer from Daimler AG (DE :).
The split was announced in February and presented by both companies as an opportunity to unlock value at both Daimler Truck and the owner of Mercedes-Benz cars and vans.
At 1023 GMT, the Daimler Truck share was quoted at 29.88 euros, above its debut price of 28 euros. The Daimler share rose by 3.7% to 74.83 euros.
“We are sure that we will create value,” said Daimler boss Ola Kaellenius in a speech in front of an empty hall in Frankfurt, as pandemic restrictions limited the number of participants.
“Trucks and cars have different requirements. We are thus exploiting the full potential of both companies, ”he said.
Daimler Truck is aiming for a double-digit profit margin across its business in 2025, compared to the 6 to 8% expected in 2021, with a particular focus on increasing lagging European sales.
If it achieves the double-digit target, investments in future technologies will be given priority over a further increase in profit, said Daimler Truck boss Martin Daum in a round table with journalists after the stock exchange listing.
“The fact that we are still here is due to two things: because the company has always made money and there have been tough times in between, and secondly because we have always invested in the future,” said Daum.
Daimler AG, which is soon to be renamed Mercedes-Benz AG, has retained 35% of Daimler Truck shares, 65% were spun off on Friday. Daimler shareholders received one Daimler Truck share for every two Daimler shares.
Today, Daimler Truck is the largest commercial vehicle manufacturer in the world by sales, but its profit margins lag behind competitors such as Traton’s Scania and Volvo Trucks of the Volvo Group.
The strongest performance was in North America with an adjusted return on sales of 10.8% this year compared to 7.2% in Asia and only 4.5% in Europe.
The focus in the coming years will be on increasing sales of electric trucks to 60% of all sales by 2030, including hydrogen and battery-electric models.
Meanwhile, Daimler said in a statement last week that it had allocated € 60 billion https://www.reuters.com/markets/europe/daimler-supervisory-board-signs-off-60-bln-euro-investment-plan-mercedes -benz-2021-12-02 for the expenses for Mercedes-Benz between 2022 and 2026 with a focus on electrification, digitization and autonomous driving.
($ 1 = 0.8854 euros)
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