German auto giant Daimler on Thursday ditched its 2009 dividend after suffering a sharp loss in an \"exceptionally difficult\" year but gave an upbeat outlook for 2010.
Daimler reported a 2009 net loss of 2.64 billion euros (3.6 billion dollars), compared with a profit of 1.4 billion euros a year earlier.
It was "an exceptionally difficult year for the economy, the auto sector and for Daimler," chairman Dieter Zetsche told a press conference.
The group was nonetheless "emerging from the crisis with plenty of torque," he stressed in a statement.
Daimler forecast a 2010 pre-tax profit of more than 2.3 billion euros but said it would not pay a dividend for 2009, when it suffered a pre-tax loss of 1.5 billion euros.
"We expect to pay a dividend again in 2010," Zetsche told reporters.
The bigger-than-expected loss and 2009 dividend news sent shares in the car maker plunging on the Frankfurt stock exchange.
While sales at Daimler\'s Mercedes Benz unit, the world\'s second biggest luxury car maker after BMW, improved towards the end of 2009, its heavy truck unit, number one worldwide, ran into trouble as commercial vehicle markets slumped amid the global economic downturn.
After pulling out of the red in the third quarter, Daimler plunged back into loss in the final three months of the year with a net loss of 352 million euros.
That compared favourably however with the fourth quarter of 2008, when Daimler posted a loss of 1.5 billion euros owing to exceptional items stemming from its sale of the US car maker Chrysler.
Costs related to Chrysler cut another 294 million euros from Daimler\'s full-year pre-tax profit in 2009.
Overall sales last year fell 20 percent to 78.9 billion euros.
The latest results caught analysts by surprise as they had expected Daimler to announce a dividend of around 43 euro cents and a fourth quarter net profit of 277 million euros, according to Dow Jones Newswires.
Although unit sales were 10.1 percent lower last year at just under 1.13 million Mercedes-Benz, Maybach and Smart city cars, they were 13 percent stronger in the fourth quarter compared with the same period in 2008.
Adjusted pre-tax profit, a measure watched closely by investors, climbed in the fourth quarter to 599 million euros from 280 million euros a year earlier.
Luxury car makers have not benefited from global car scrapping schemes but Asian sales improved towards the end of the year.
"Ongoing solid growth of emerging markets such as China and India is exerting a positive influence," Daimler said as it pointed to growing demand for larger Class E and Class S autos.
While it will not pay a dividend, Daimler said staff would get a bonus of 500 euros "in recognition of the committed efforts of the workforce in a difficult environment."
After plunging by up to nine percent just after the figures were released, Daimler shares showed a loss of 5.24 percent at 31.31 euros in midday trade on the Frankfurt stock exchange, while the DAX index of German blue-chips was 0.34 percent higher overall.
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