Daimler builds cash cushion, shares rise

[rickaren]

Daimler builds cash cushion, shares rise

Posted Tuesday, Oct 20, 2009, 3:59 pm in Employee News

Daimler reported a growing cash cushion, and its quarterly earnings beat forecasts on Monday in a sign that the company was weathering the worst industry downturn in decades better than expected, Reuters reported.

“The figures are just overdimensionally good. They are the highlight of the day,” said one Frankfurt trader as shares in the maker of Mercedes Benz cars rose 7 percent to close at 37.62 euros, the news service said. Automakers around the world have been trying to shore up their cash supply as demand for cars dropped amid the global economic crisis and growing inventories weighed, the story said.

Daimler’s net industrial liquidity rose to 6.7 billion euros ($10 billion) by the end of September from 4.6 billion euros at the end of June, the company said in a statement. It said free cash flow in its industrial business—a key measure of the company’s financing capabilities—was at 2 billion euros in the third quarter, compared with 1.4 billion euros in the second quarter, the story said. (Reuters)