Daimler Cuts Dividend as Downturn, R&D Costs Hit Mercedes

The Mercedes-Benz star is displayed on the front of a Mercedes-Benz G-model at the annual press conference of German auto giant Daimler AG in Stuttgart, southwestern Germany, on February 1, 2018. Chinese carmaker Geely purchased an almost 10 percent stake in Daimler in February. Thomas Kienzle/AFP/Getty Images

STUTTGART, Germany—Daimler cut its dividend on Feb. 6 after fourth-quarter operating profit plunged by 22 percent, hit by trade wars, rising costs for developing electric cars and an industry downturn that has dented even the most profitable carmakers.

Daimler said the return on sales at Mercedes-Benz cars fell to 7.3 percent in the fourth quarter from 9.5 percent in the year-earlier period as emissions tests led to supply bottlenecks and prices for luxury vehicles deteriorated.