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24.06.2019

Daimler cuts its profit forecast again

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

The carmaker is citing lifting provisions for issues related to its diesel vehicles

Stocks impacted: Daimler AG (DAI)

This is the third time in a year that the carmaker cuts its profit forecast. Group earnings before interest and tax for 2019 are now expected to be at last year’s level. Previously, the company had expected the figure to be slightly higher. The company also said that 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%. As a reminder, the German manufacturer is facing investigations in Europe and the U.S. over allegedly excessive pollution from its diesel vehicles. The reports followed the 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. Today, car executives are due to meet with government officials and experts at the chancellery in Berlin to talk about the future of the car industry. On Friday, Daimler stocks rose 0.5% and are losing already nearly 3% today.

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