Daimler AG (DAI), which helped form European Aeronautic, Defence & Space Co. (EAD) more than a decade ago, will book a 2.7 billion-euro ($3.44 billion) gain from the reevaluation of its remaining holdings in the airplane maker.
The operating-profit increase, which has no cash-flow effect, will be booked in the second quarter, the Stuttgart, Germany based automaker said in a statement today. The move will also add 1.25 euros in earnings per share in 2013.
The gain is the result of a change in how Daimler will account for its current 7.5 percent EADS stake, and a holding by a group linked to the automaker, following a vote today by EADS owners to dissolve the shareholder pact tying the luxury-car manufacturer to the parent of Airbus SAS.
“We want to focus on our core business,” Daimler Chief Financial Officer Bodo Uebber said in the statement. “We intend to sell our remaining shares in EADS as we have previously announced.”
Daimler, the owner of the Mercedes-Benz car brand, already sold a 7.5 percent stake in EADS for 1.66 billion euros in December to concentrate on cars and trucks. Daimler’s exit is part of a broader overhaul of EADS’s shareholder structure.
EADS investors today approved the purchase of 15 percent of the Toulouse, France-based aerospace company’s stock at a maximum 50 euros a share to bolster its value after the disposal of block holdings. French publisher Lagardere SCA (MMB) is also selling its stake in the ownership overhaul.
The book gain for Daimler is the result of the price increase in EADS shares, which have jumped 60 percent in the last six months. The estimate assumes a price of 38 euros a share, and the final gain may be different, Daimler said today. EADS was trading at 39.78 euros at 4:53 p.m. in Paris. Daimler stock was down 1.2 percent at 43.58 euros.
The eventual sale of Daimler’s remaining 7.5 percent stake in EADS will have a positive impact on cash flow, as the sale of the first 7.5 percent holding did, the carmaker said.