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.
#economics
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.
RELATED CONTENT
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.