Newspaper article St Louis Post-Dispatch (MO)

Daimler-Benz to Cut 40,000 Profits Fall 84 Pct. under Sec's Rules

Newspaper article St Louis Post-Dispatch (MO)

Daimler-Benz to Cut 40,000 Profits Fall 84 Pct. under Sec's Rules

Article excerpt

Daimler-Benz AG, Germany's leading industrial company, said Friday it will cut 40,000 jobs or about 11 percent of its work force by the end of next year, following an 84 percent drop in profits.

The industrial conglomerate, which owns Mercedes-Benz and ranks as one of Europe's leading aerospace companies, said net earnings for the first six months of the year plunged to $104 million from $631.5 million a year ago.

For the same period, sales fell to $25.77 billion from $29.77 billion.

"The current difficult economic situation has forced us to put some measures into action earlier than was originally planned," Daimler Chief Executive Edzard Reuter told a news conference.

Daimler is preparing to become the first German company listed on the New York Stock Exchange. Friday's financial report was the first published by a German company under U.S. Securities and Exchange Commission guidelines and provided a revealing glimpse into the accounting procedures of German firms.

Using German rules, which allow firms to dip into reserves to bolster results, Daimler had a profit of $102 million for the first halfof 1993.

Reuter acknowledged that his and other German companies had obscured operating losses or propped up gains in lean quarters by injecting income from the fat ones. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.