Daimler Cuts 2019 Earnings Outlook Again
July 12 2019 - 3:19AM
Dow Jones News
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)
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