Daimler CEO stumbles before exit
The announcement on market expectations sent Daimler’s shares to their lowest since 2013
Daimler AG CEO Dieter Zetsche has spent the last few years breathing new life into the maker of MercedesBenz cars, reclaiming the luxury-leader position from BMW AG with fresh designs and a slew of new models.
The turnaround made Zetsche, 65, a celebrity in business circles, winning him accolades both inside and outside the company. But before moving over for a new CEO after a dozen years at the helm, he’s ■ starting to look tarnished.
On Friday afternoon, the company shocked investors with a warning that earnings this year will be “significantly” lower than market expectations. The announcement sent Daimler’s shares to their lowest since 2013. Daimler had already cut its outlook in June, breaking a years-long streak of earnings releases that were predictable and generally positive. Daimler stock is down almost a third this year, far worse than BMW or Volkswagen AG.
Friday’s announcement didn’t go down well with the financial community, with analysts at Jefferies bemoaning the “annoying lack of disclosure.” Daimler has been on a rocky ride starting three years ago with Volkswagen AG admitted cheating on diesel emissions, sending shock waves and haunting carmakers to this day.