Investor rewards initiated: Daimler Truck, the German truck manufacturer, unveiled plans to reward investors with a boosted dividend and a share repurchase initiative following a robust performance in 2023, surpassing expectations. Despite projecting stagnant earnings for 2024, the company's shares surged by over 3 per cent.

Notably, Daimler Truck announced a 24-month share buyback program worth €2 billion and proposed a dividend of €1.9 per share for 2023, marking an increase from the previous year's €1.3. This mirrors a trend amongst several automakers in recent weeks, prioritising shareholder returns.

The company reported pre-tax earnings (EBIT) of €5.5 billion for 2023, a notable rise from €4 billion in the preceding year, surpassing analyst estimates of €5.2 billion. Despite the positive performance, Daimler Truck foresees flat revenue and EBIT for 2024, citing persistent challenging economic conditions.

Daimler Truck's delivery figures for 2023 reflected a modest 1 per cent increase to 526,053 trucks and buses, achieving its highest-ever adjusted margin of 9.9 per cent, up from 7.7 per cent in the previous year. The company aims for a double-digit margin by 2025 and anticipates an adjusted return on sales between 9.0 per cent and 10.5 per cent for its key industrial business in 2024.

Early trading on the Frankfurt Stock Exchange saw Daimler Truck's shares climb by 3.1 per cent, signalling positive investor sentiment towards the company's initiatives and financial performance.

(With Reuters Inputs)