STUTTGART, Germany Feb 7 Daimler
does not expect any cash drain resulting from contributions to
fund pension liabilities, an issue that has gained importance
due to the low interest rate environment.
"We don't plan for a further specific pension contribution
in 2013," finance chief Bodo Uebber told analysts during a
conference call on Thursday.
Daimler contributed 350 million euros ($473.83 million) in
cash to fund pensions at its EvoBus unit last year.
Companies with defined benefit pension schemes have to
calculate the present value of future liabilities using the
discount rate, which tracks broader moves in interest rates and
The lower the discount rate applied, the higher the present
value of those future liabilities. This is prompting more and
more companies to have to stump up cash to plug the underfunded
status of their pension schemes.
($1 = 0.7387 euros)
(Reporting By Christiaan Hetzner)