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Daimler Issues Second Profit Warning
Daimler AG has lowered its financial guidance for the second time in four months, citing recall costs and diesel emission compliance issues.
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Daimler AG has lowered its financial guidance for the second time in four months, citing recall costs and diesel emission compliance issues.
The company now expects its full-year operating profit for 2018 will be “significantly below” last year, when EBIT soared 14% to €14.7 billion. At the time, Daimler expected to post similar results this year.
The company says other contributing factors to the reduced outlook are production delays caused by the need to certify all models under Europe’s new WLTP emission protocol, and regulatory demands to address vehicles that are still using banned refrigerant R134a.
Daimler’s preliminary EBIT figures for the third quarter indicate the group’s operating profit in July-September plummeted 27% to €2.5 billion ($2.9 billion).
The data show sharp EBIT drops in the third quarter for Mercedes-Benz Cars (-35% to €1.4 billion) and Daimler Financial Services (-23% to €392 million). Those declines offset a 38% rise to €850 million for Daimler Trucks.
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