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Daimler Cuts 2013 Outlook After 60% Earnings Plunge
Daimler AG's net profit tumbled to €564 million ($736 million) in the first quarter of this year from €1.4 billion ($1.9 billion) in the same period of 2012.
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Daimler AG's net profit tumbled to €564 million ($736 million) in the first quarter of this year from €1.4 billion ($1.9 billion) in the same period of 2012.
Revenue slid 3% to €26.1 billion ($34 billion). Sales of passenger and commercial vehicles were unchanged at 501,600 units as a 1% gain in cars sales offset a 3% drop in truck volume.
The company's earnings before interest and taxes plummeted to €917 million ($1.2 billion) from €2.1 billion ($2.7 billion) in the first quarter of last year. Daimler attributes the decline to higher warranty costs, weaker-than-expected sales in Europe, poor performance at its car units and heavy spending to expand in China and India.
The company predicts that its income in the second half of the year will be higher than in the first because of new-model launches and greater efficiencies.
But Daimler now expects full-year EBIT, excluding one-time items, to decline instead of matching 2012 levels, as previously forecast.
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