Daimler cuts 2019 profit outlook on diesel issues

FRANKFURT (Reuters) - Daimler has cut its earnings outlook for this year after lifting provisions for issues related to its diesel vehicles by 'a high three-digit million euro amount', the carmaker said on Sunday. Group earnings before interest and tax for 2019 are now expected to be at last year's level

Reuters June 24, 2019 01:05:07 IST
Daimler cuts 2019 profit outlook on diesel issues

Daimler cuts 2019 profit outlook on diesel issues

FRANKFURT (Reuters) - Daimler has cut its earnings outlook for this year after lifting provisions for issues related to its diesel vehicles by "a high three-digit million euro amount", the carmaker said on Sunday.

Group earnings before interest and tax for 2019 are now expected to be at last year's level. Previously, the carmaker had expected the figure to be "slightly higher".

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

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.

The company also said it was reducing its forecast for the return on sales for Mercedes-Benz vans.

It now sees a return between minus 2% and minus 4%, below its previous forecast of a return on sales of 0% to 2%.

(Reporting by Tom Sims; Editing by Jan Harvey)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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