AP
Daimler CEO Dieter Zetsche: earnings forecast for 2018 lowered
The carmaker Daimler Show stock market chart expects a weaker annual result than previously forecast in view of the costs associated with the diesel scandal. The group lowered on Friday its expectation for 2018 and called for several reasons. The third quarter had missed the expectations clearly, it was said. However, “decisive” is “an increase in the expected expenditure in connection with ongoing administrative procedures and measures in various regions concerning Mercedes-Benz diesel vehicles”.
Investors reacted unsettled. The share of Daimler Show stock market chart yielded around 7 percent following the profit warning. With that they have sunk to the lowest level since July 2013.
At the Mercedes-Benz Group brand, earnings before taxes and interest are now expected to be “well below the previous year’s level,” Daimler announced in Stuttgart. The consolidated result will also be “significantly” below the 2017 level. Last year had Daimler As many vehicles sold as never before, the profit rose by 24 percent to 10.9 billion euros, before taxes and interest rates it was 14.7 billion euros.
Earnings significantly below previous year’s level expected
Other reasons for the more pessimistic view are the car maker lower sales due to delays in delivery in the Mercedes-Benz Vans division, a decline in demand for buses of the group and the “risk provision for a possibly required conversion of certain vehicles”, which still with the refrigerant used earlier R134a are equipped.
At the beginning of October, the European Court of Justice ruled that the Federal Government reacted too late to Daimler’s failure to comply with the European Union’s Air Conditioning Directive. In the diesel scandal, the federal government had ordered an official recall of several diesel models, of which Germany-wide 238,000 vehicles and Europe-wide even 774,000 cars are affected. Daimler announced that it would cooperate with the authorities.
la / dpa / Reuters