Daimler Truck surges 13% to new record on bumper earnings, buyback announcement

Shares of Daimler Truck hit a fresh all-time high Friday, spiking more than 13.5% in early deals, after posting record full-year profit and announcing a 2 billion euro ($2.16 billion) share buyback program.

The German truck maker posted better-than-expected pre-tax earnings of $5.5 billion euros for 2023, up 39% on the previous year's 4.4 billion. Analysts had expected EBIT (earnings before income tax) of 5.2 billion.

The company also said it would conduct the buyback program over the course of the coming 24 months and proposed a dividend of 1.9 euros per share for 2023, up from 1.3 euros a year earlier.

Shares of the stock dipped slightly to trade up 12.4% by 10:15 a.m. London time.

Daimler's Chairman Martin Daum described 2023 as a record year for the company in a statement, but cautioned that revenue and earnings were likely to be flat in 2024 amid "difficult economic conditions."

Mercedes and General Motors are among several other carmakers to have announced share buybacks and increased dividends over recent months to return cash to investors.