Companies

Daimler scraps full-year profit forecast after Q1 slump

DPA Stuttgart (Germany) | Updated on March 12, 2018 Published on April 24, 2013

Daimler Group’s Mercedes Benz operations posted a 63-per-cent fall in EBIT to 460 million euros during the first three months of the year after revenue declined 6 per cent to 14.1 billion euros. File Photo   -  Business Line

German automaker Daimler scrapped its profit forecast for the year on Wednesday after posting a sharp fall in first-quarter profit.

Stuttgart-based Daimler said it expected 2013 earnings before interest and tax (EBIT) from continued operations to fall short of last year’s 8.1 billion euros ($10.5 billion).

This came after first-quarter EBIT from ongoing business slumped 56 per cent to 917 million euros, from 2.1 billion euros in the same period last year. Revenue declined 3 per cent to 26.10 billion euros between January and March.

“In the first three months of the year, many markets, especially in western Europe, developed worse than expected for economic reasons,” Chief Executive Dieter Zetsche said releasing the results.

Daimler warned earlier this month that it would have to reassess its earnings outlook in light of a weak start to the year.

Net profit plunged 60 per cent to 536 million euros in the first three months of the year from 1.347 billion euros a year earlier, the Group said.

Daimler’s flagship Mercedes Benz brand has struggled to meet its goal of overtaking BMW and Audi — the world’s top two luxury carmakers — by 2020.

In particular, Daimler has fallen behind BMW and Audi in China amid changes to its sales organizations in the world’s biggest car market.

The group’s Mercedes Benz operations posted a 63-per-cent fall in EBIT to 460 million euros during the first three months of the year after revenue declined 6 per cent to 14.1 billion euros.

Earnings at Daimler’s truck division dropped 69 per cent to 116 million euros.

Despite the downbeat start to the year, the company expects business to improve during the second half of the year as it rolls out new models, including updated S-class and E-class saloons as well as its CLA compact four-door coupe.

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Published on April 24, 2013
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