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Daimler Issues a Fourth Profit Warning
Daimler AG has lowered its profit outlook for the fourth time since last summer, warning it will post a €1.6 billion ($1.8 billion) pretax loss in the second quarter.
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Daimler AG has lowered its profit outlook for the fourth time since last summer, warning it will post a €1.6 billion ($1.8 billion) pretax loss in the second quarter.
The company says quarterly EBIT losses by its Mercedes-Benz brand car and van businesses will offset modest gains for its truck, bus and financial services operations. Last year, the group posted a positive EBIT of €2.6 billion in April-June.
Daimler says two regulatory issues also will have a major impact on EBIT. The company will boost provisions for special charges by €1 billion to replace explosion-prone Takata airbag inflators and by €1.6 billion to remedy diesel engines that don’t meet emission standards in Europe and elsewhere.
The company further warns of delays in ramping up production of new models and sales that grow slower than expected.
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