Daimler Holds to 2008 Forecast Despite Economic Slowdown

Germany’s Daimler said today that it was holding to its 2008 and medium-term earnings forecasts, saying that its focus on the premium market would help it to stay ahead of an economic slowdown.

The automaker said last February that its pretax earnings for 2008 would clearly pass the level of 2007 when the company generated income of $13.74. Daimler has also stayed true to its prediction that the margin on its overall business would rise to 9 percent beginning in 2010.

Company CEO Dieter Zetsche referenced fears of a slowing world economy by saying, “We are well equipped to handle the current macroeconomic challenges. Zetsche pointed out that the company wasn’t financially tied to the subprime lending business, and that Daimler possesses a “high level of gross liquidity,” that further strengthens its position.

Source: AB