Daimler warns on 2019 profit outlook | 2019-06-25 | daily-sun.com

Daimler warns on 2019 profit outlook

25 June, 2019 12:00 AM printer

FRANKFURT: Daimler cut its 2019 earnings outlook on Sunday after lifting provisions for issues related to its diesel vehicles by hundreds of millions of euros.

Group earnings before interest and tax this year are now expected to be at last year's level, the carmaker said, against a previous estimate for a slight increase. Earnings will be affected in the second quarter, it said, report agencies.

The revision is related to an expected increase in expenses linked to "various ongoing governmental proceedings and measures" with regard to Mercedes-Benz diesel vehicles, the company said.

The increase in the provision is likely to be "a high three-digit million euro amount", it added.

A spokesman declined to elaborate on the nature of those issues.

However, Sunday's profit warning follows news over the weekend that Daimler must recall 60,000 Mercedes diesel cars in Germany after regulators found that they were fitted with software aimed at distorting emissions tests.

The transportation ministry said it was expanding its investigation into further models.


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