Daimler Posts Net Loss as Revenue Rises

Daimler AG posted a net loss attributable to shareholders of €1.3 billion ($1.4 billion) in the second quarter, reversing a €1.7 billion gain in the same period last year.

Revenue grew 5% to 42.7 billion ($47.6 billion) in April-June, even though unit sales of passenger cars and commercial vehicles fell 1% to 821,700 units.

Deliveries of Mercedes-Benz cars in the second quarter dropped 3% to 575,600 units, and van sales were flat at 111,100. But demand rose for Daimler commercial trucks (+2% to 126,500 vehicles) and buses (+12% to 8,400).

Daimler’s second-quarter pretax earnings swung to a €1.6 billion loss from a positive €2.6 billion last year.

The company notes that its results were hit by €4.2 billion ($4.7 billion) in exceptional items. The biggest charges were €2.5 billion in diesel-related repairs and pollution fines for cars and light vans, and €940 million to replace explosion-prone Takata airbag inflators.

Daimler predicts its full-year vehicle sales will be flat, with revenue slightly greater than in 2018. The company says its EBIT will be sharply below last year’s result but show significant improvement in the fourth quarter.