Daimler Truck shares soar at the launch of the Frankfurt market

German Stock Price Index DAX chart pictured at the stock exchange in Frankfurt
The German stock price index DAX chart is illustrated at the stock exchange in Frankfurt, Germany, December 10, 2021. Daimler Truck will begin trading in Frankfurt following the separation from Daimler, the company will be changed its name to Mercedes-Benz and retained 35% of the shares in the unit.REUTERS / Employee

December 10, 2021

By Victoria Waldersee and Ilona Wissenbach

FRANKFURT (Reuters) – Shares in commercial vehicle maker Daimler Truck jumped higher at its market debut in Frankfurt on Friday, marking the long-awaited launch from Daimler AG.

The split was announced in February and is seen by the two companies as an opportunity to unlock value for both Daimler Truck and owners of Mercedes-Benz passenger cars and vans.

At 08:55 GMT, shares of Daimler Truck were trading at 29.03 euros, well above their initial price of 28 euros. Shares of Daimler fell 17%, a technical side effect of bankruptcy.

“We are sure that we will create value,” said Daimler CEO Ola Kaellenius, speaking in front of a emptier-than-usual hall in Frankfurt as pandemic restrictions have limited numbers. participants.

“Trucks and cars have different requirements. As a result, we are unleashing the full potential of both companies,” he said.

Daimler AG, soon to be renamed Mercedes-Benz AG, took a 35% stake in Daimler Truck, while 65% was spun off on Friday. Daimler shareholders receive one share in Daimler Truck for every two Daimler shares they own.

Daimler Truck is currently the world’s largest producer of commercial vehicles by revenue, but its profit margins lag behind competitors such as Traton’s Scania and Volvo Group’s Volvo Trucks.

Its performance was strongest in North America, where it reported an adjusted sales return to date of 10.8% this year, compared with 7.2% in Asia and just 4.5% in Europe.

“Now is the time to really get started with Daimler Truck,” Chief Executive Martin Daum said in a statement.

The truck maker is targeting double-digit margins across its entire business by 2025, up from a projected 6-8% in 2021.

Their focus in the coming years will be on boosting sales of electric trucks, which they hope will account for 60% of all sales by 2030.

Meanwhile, Daimler said in a statement last week that it has set aside 60 billion euros -investment-plan-mercedes -benz-2021-12-02 in Mercedes-Benz spending from 2022 to 2026, focusing on electrification, digitalization and autonomous driving.

(1 dollar = 0.8854 euros)

(Reporting by Victoria Waldersee, Ilona Wissenbach Editing by Miranda Murray and Mark Potter) Daimler Truck shares soar at the launch of the Frankfurt market

Bobby Allyn

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