Daimler Cuts 2019 Earnings Outlook Again

   By Anthony Shevlin

Daimler AG (DAI.XE) on Friday cut its earnings outlook for the year once again after its second quarter earnings came in well below market expectations.

The German car maker said its second-quarter earnings before interest and taxes was minus 1.6 billion euros (minus $1.8 billion) compared with a profit of EUR2.6 billion the year prior.

Daimler said its EBIT was hit by increased provisions for an extended recall in Europe and the rest of the world related to Takata airbags. Provisions were increased by around EUR1 billion, Daimler said.

Expenses related to the ongoing diesel proceedings increased by around EUR1.6 billion, it said.

Furthermore, Daimler said a product portfolio review will lead to a negative hit to its Mercedes-Benz Vans division of EUR0.5 billion in the second quarter.

Taking into account the above, along with slow product ramp ups and lower-than-expected growth in automotive markets, Daimler sees its 2019 group EBIT "significantly below" the prior year level.

This is Daimler's second profit warning in a month. In June the company saw its 2019 EBIT to be in line with the year previous. Daimler previously guided for slight growth in its EBIT.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com; @anthony_shevlin

(END) Dow Jones Newswires

July 12, 2019 03:04 ET (07:04 GMT)

Mercedes Benz (PK) (USOTC:DMLRY)
Historical Stock Chart
From Mar 2024 to Apr 2024