[ad_1]
Stuttgart (APA / Reuters) – Daimler has again capped its profit target because of the growing burden of the diesel scandal. In 2018, consolidated earnings before interest and taxes (EBIT) will decline by more than ten percent, the company said Friday. These are mainly the higher costs "related to administrative procedures and procedures in various regions" for diesel cars.
In the Mercedes-Benz pbadenger car division, operating profit fell by more than a third in the third quarter. Even the sites contaminated by the refrigerant conflict hit the office. In addition, the van division poses problems due to the modification of the more stringent exhaust gas measurement rules, WLTP. Demand in the bus sector has decreased.
The many difficulties encountered led Daimler to a "reevaluation of profit forecasts" – and a second warning about profits within four months. The stock market reacted in a shocked manner: Dax's share fell temporarily by more than five percent, reaching its lowest level in five years, as well as other values of cars.
As Daimler also announced, the preliminary results of the third quarter were "well below market expectations". The rate of Ebit fell to 2.48 billion euros, after 3.409 billion a year ago – which corresponds to minus 27%. As a result, net income decreased for the third consecutive quarter.
For Daimler's outgoing president, Dieter Zetsche is a goodbye with brilliant numbers moving far and wide. The long-time CEO has entrusted the staff to the former development manager, Ola Källenius, at the end of the 2019 Annual General Meeting. As the last major act, Zetsche had in July the reorganization of Daimler en route. The long-established company must be divided into three legally independent entities under the umbrella of a holding company: Mercedes-Benz (cars and vans), Truck (truck and bus) and Mobility (financial and mobility services).
In the third quarter, cars and vans were the main problem for children. The Mercedes-Benz Cars division recorded a decline in profits of about 1.37 billion euros, which corresponds to minus 35%. The van segment was even in the red: the loss amounted to 93 million euros, after an operating profit of 214 million euros a year ago.
"Most looks are first searched for artisbad reasons," said a stockbroker. Daimler must deal with the scandal of diesel exhaust gases, the delivery problems of delivery vehicles and the drop in demand for buses. Arndt Ellinghorst and George Galliers of the EvercoreISI research house wrote that the profit warning had had unique effects primarily related to the diesel scandal and the controversy over refrigerants.
Daimler had already reached the revenue target for 2018 in June and was Dax's first company to have invoked the global trade dispute as the reason. In addition, the Swabians discussed the cost of recalling diesel vehicles. Overall, the automaker has ordered about 774,000 cars because of excessive emissions of nitrogen oxides in the workshops, much of which was already scheduled for the voluntary recall announced in 2017. In the summer, it has been said that the impact on the provision for legal costs was not yet foreseeable. The Kraftfahrt-Bundesamt accuses Daimler of strangling the emissions control with an unacceptable stop. The car company wants to proceed against legal. In the United States, the investigation of the handling of exhaust gases is still ongoing, a fine is not excluded here.
Faced with the many difficulties of the automotive industry, Daimler's competitors are not spared: BMW has distorted the forecast results for 2018 in September, especially because of the fierce battle around the WLTP conversion. Audi announced earlier this week the annual targets clearly defined below. Ingolstadt had already accepted a fine of 800 million euros for the diesel scandal.
~ ISIN DE0007100000 WEB http://www.daimler.com ~ APA450 2018-10-19 / 17: 33
Source link
