Daimler and the Capital Market

 

Key figures

  June 30, 2014 June 30, 2013 % change
       
Earnings per share in Q2 (in €) 1.97 2.65 -26
Outstanding shares (in millions) 1,069.8 1,069.0 +0
Market capitalization (€ billion) 73.18 49.70 +47
Xetra closing price (€) 68.40 46.49 +47

 

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Daimler share price moves sideways in the second quarter

Our share price developed during the second quarter of 2014 in line with the Dow Jones STOXX Auto Index. At the beginning of the quarter, equity markets profited from the expectation that the European Central Bank (ECB) might expand its supporting measures against the backdrop of low inflation. However, increasing concern about the spread of the Ukraine crisis then led to weakening share prices on worldwide stock markets. With its results for the first quarter, Daimler somewhat exceeded analysts’ expectations. But in general in this reporting season, most companies’ results were in line with market expectations and did not have a positive impact on share prices. Equity markets recovered in the second half of the quarter after the ECB had announced that it would counteract the risk of deflation and the weak development of credit volumes in the euro zone by taking further monetary measures, and both the DAX and the S&P 500 reached new historic levels. Cyclical sectors followed a rather weaker development than the overall market in the second quarter and the automotive sector was not immune to this trend. Daimler’s share price stood at €68.40 at closing on June 30, and was thus at the level of the start of the quarter. It developed slightly better than the Dow Jones STOXX Auto Index (-1%) but slightly worse than the DAX (+3%). Taking into consideration the dividend of €2.25 per share decided upon by the Annual Shareholders’ Meeting on April 9, 2014, our shareholders benefited from value growth of 3% in the second quarter. Market capitalization at the end of the quarter was €73.2 billion, which was €23.5 billion or 47% higher than a year earlier.

 

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Favorable interest environment used for refinancing

The Daimler Group took advantage of favorable conditions particularly in the sterling market in the second quarter and placed two emissions with a total volume of £650 million. In addition, in early July, Daimler AG issued a ten-year bond in the euro market with a volume of €500 million. In April and July 2014, due to the very favorable market environment, asset-backed securities (ABS) transactions were carried out in the United States with volumes of $2.0 billion and $1.1 billion respectively.

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