Daimler hit by German slump, CEO expects high demand in the fourth quarter

FRANKFURT (Reuters) – Daimler (DAIGn.DECEO Dieter Zetsche said on Thursday that customer demand remained strong, while regulatory repression of diesel cars and the 13% slowdown in sales of Mercedes-Benz cars in Germany weighed on the bottom line. third trimester.

"The automotive industry and, therefore, Daimler are still in a very difficult environment. The continued strong demand from our customers makes us confident for the fourth quarter, "Zetsche said in a statement.

Earnings before interest and taxes (EBIT) in the third quarter fell 27% to 2.49 billion euros, penalized by a 35% decline in Mercedes-Benz Cars EBIT to 1.37 billion euros .

The decline in profits is accompanied by persistent friction between the German government and automakers on the desirability of installing cost-effective exhaust systems that reduce emissions from older diesel vehicles and over time. an ongoing US emissions survey.

Sales of Mercedes-Benz Cars, a division that includes the Smart brand, are expected to reach the level of last year, said Daimler after announcing a 6% drop in shipments in the third quarter.

Profits were also affected by a move made following a court ruling upholding the ban on R134a air conditioning fluid used in Mercedes-Benz cars, Daimler said.

Daimler announced last week that its operating profit for the year as a whole would drop by more than 10% due to "government proceedings and measures in various regions", which represents a second warning about the profits of the company in four months.

In May, German prosecutors raided Daimler's offices as part of a fraud investigation into possible manipulation of diesel fuel emission levels. US authorities have asked Mercedes-Benz to explain the emission levels of certain vehicles.