Daimler AG aims to acquire 22.3% equity interest in Tognum AG, a global leading producer of off-highway engines. Daimler will be shelling out €20 per share. On this basis, the purchase price would be approximately €585 million ($904.7 million), making Daimler the largest shareholder in Tognum.

Tognum is one of the leading suppliers of high-speed, powerful diesel engines and complete propulsion systems for ships, heavy agricultural and rail vehicles, industrial drive systems and on-site power generators. Tognum will allow Daimler to tap into alternative power propulsion systems. This is definitely going to be an interesting partnership, let’s see how it turns out.

Daimler AG today presents its interim report on the first quarter of 2008. Daimler achieved EBIT (Earnings before interest and taxes) of €1,976 million ($3.082 billion) in the first quarter (Q1 2007: €3,292 million).
The Mercedes-Benz Cars division improved its EBIT and thus compensated for the lower earnings recorded by Daimler Trucks and Daimler Financial Services.

Earnings decreased primarily because EBIT in the first quarter of 2007 included a special gain of €1,563 million related to the transfer of EADS shares. In the first quarter of 2008, special gains were realized in connection with the sale of the real-estate properties at Potsdamer Platz (€449 million) and in connection with the transfer of EADS shares (€102 million). There were opposing effects from expenses of €491 million related to Chrysler.

Net profit amounted to € 1,332 million ($2.07 billion) (Q1 2007: €1,972 million ($3.075 billion))