Because of the costly processing of diesel crisis and other adversities, Daimler has again screwed its profit targets for 2018 to the bottom. The current result will be “significantly” below the level of the previous year.
The group lowered its expectation for 2018 and called for a number of reasons as the cause. “” However, “an increase in the anticipated expenses in connection with the ongoing governmental procedures and actions in different regions on Mercedes-Benz diesel vehicles”.
Especially in the passenger Car division, Mercedes-Benz, it lurches. In addition, there are in the segments of Bus and Vans problems with demand and delivery. The share fell after the profit warning, temporarily to almost seven percent.
The group’s Mercedes-Benz brand, a profit before interest and tax will now be expected to be “significantly below previous year’s level,” said Daimler in Stuttgart. The group’s earnings will be “significantly” below the level of 2017. Last year, Daimler had sold as many vehicles as never before, the profit increased by 24 percent to 10.9 billion euros, before interest and taxes amounted to 14.7 billion Euro.
The Trouble with the air-conditioning systems
Further reasons for the more pessimistic view of lower sales due to delays in the Delivery of the division’s Mercedes-Benz Vans, a decline in demand for buses of the group and the “risk preparedness for a possibly required conversion of certain vehicles” that are equipped with the previously used refrigerant R134a.the car maker, according to
The European court of justice had ruled in early October that the Federal government responded late to a breach of Daimler against the air-conditioning systems-Directive of the European Union. In the diesel scandal, the Federal government had ordered an official recall of several Diesel models, from the Germany 238.000 vehicles and Europe-wide affected even 774.000 cars. Daimler announced that it plans to cooperate with the authorities.
dk/sti (afp, rtr, dpa)