Dollar plunge hammers Daimler-Benz
Tuesday 12 September 1995
An "enormous" fall in the dollar against the mark had its most severe impact on the Dasa aerospace division and a restructuring programme costing DM1bn (pounds 440m) is likely to mean thousands of job losses.
Daimler's total losses of DM1.56bn, down from a DM462m profit, shocked analysts who had been expecting losses of about DM300m.
The figure was swelled by a one-off DM1.2bn charge at Dasa. Full-year group losses could amount to as much as DM2bn, the company hinted.
Dasa's operating loss more than tripled over a year-earlier to DM1.6bn. The company's sales are denominated in dollars, and because of the US currency's fall against the mark, Dasa was obliged under German accounting to take the charge.
The only bright star in the results was at the Mercedes-Benz car business, which increased operating profit by 44.7 per cent to DM1.5bn on sales up 3 per cent to DM35.6bn.
The group's electrical engineering and railway subsidiary, AEG, continued to lose money, reporting an operating loss of DM609m, against DM341m last time.
The company said it was working on plans for a radical solution, which some German analysts believe might require 15,000 job cuts at Dasa.
- 3 Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
- 4 Ann Summers survey reveals the UK's favourite sex position
Man on naked bike ride gets ejected after becoming aroused
Caitlyn Jenner's mother Ester thought her daughter, formerly known as Bruce Jenner, had transitioned for money
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...