Mercedes-Benz CEO Dieter Zetsche Buys 22,000 Shares in Daimler image

Mercedes-Benz CEO Dieter Zetsche has purchased 22,000 shares of the German automaker.

Zetsche has recently acquired 22,000 shares in Daimler, for the price of 1,146,000 euro. For the shares’ purchase the CEO applied the proceeds he had recently got from the exercise of an existing stock option plan.

“With this share purchase, Dieter Zetsche is underscoring his confidence in a sustained and positive development for Daimler. At the same time, it is a signal to all the other Daimler shareholders,” stated Jörg Howe, Corporate Spokesman and Head of Global Communications at Daimler AG.

Earlier this month Daimler reported second-quarter profit which surpassed analysts’ estimates. The profit improved after Mercedes-Benz sold its stake in the owner of planemaker Airbus SAS. The EBIT more than doubled reaching 5.2 billion euro from 2.24 billion euro in 2012. The gain from the selling of the European Aeronautic, Defence & Space Co. shares was 3.2 billion euro.

“The numbers are very, very strong,” Sascha Gommel, a Frankfurt-based analyst at Commerzbank AG, said by phone. Profitability at Mercedes “is significantly better than expected, thanks obviously to the model cycle.”

To boost sales Mercedes is making investments in new entry-level models, including the A-Class hatchback and the CLA four-door compact coupe, but also to revamp the top-of-the-line S-Class. Sales during the first half of the year increased 6.4% to 694,433 units, a record for this period.

Source: Daimler.com, Reuters