Daimler keeps 2010 earnings, dividend outlook

BERLIN (BestGrowthStock) – German carmaker Daimler (DAIGn.DE: ) reaffirmed it would earn more than 2.3 billion euros ($3.14 billion) of operating profit this year, with all divisions returning to the black, allowing it to pay a dividend again.

Following a near 27 percent rise in sales of Mercedes-Benz brand luxury cars, Daimler said on Wednesday its retail volumes would increase faster than those for the overall industry.

“We plan to grow at around double the rate of the global passenger car market in 2010,” Chief Executive Dieter Zetsche said in a statement published ahead of the annual general meeting.

Zetsche will likely earn a hefty rebuke from shareholders on Wednesday for his decision to omit a payout for the first time in 14 years, although he has pledged to distribute a dividend for 2010 equivalent to about 40 percent of the group’s net profit.

Last week, Daimler agreed to a cross-shareholding with Renault (RENA.PA: ) and Nissan (7201.T: ), cementing a strategic partnership that will stretch from small cars through light commercial vehicles to sharing even technology for electric powertrains.

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(Reporting by Christiaan Hetzner)

Daimler keeps 2010 earnings, dividend outlook