Wednesday, 20 October 2021

Daimler profits hit by diesel scandal

FRANKFURT AM MAIN: German car giant Daimler reported a slump in third-quarter profits, confirming a weaker 2018 outlook as it suffered lower sales and shouldered costs for refits to polluting diesel cars.

Net profit at the Mercedes-Benz maker shed 21 percent year-on-year between July and September, to 1.76 billion euros ($2.0 billion), short of analysts’ forecasts.

Operating, or underlying profits were even harder hit, falling 27 percent to 2.5 billion euros, while revenues were down 1.0 percent at 40.2 billion.

“The automotive industry and thus also Daimler are still in a very challenging environment,” chief executive Dieter Zetsche said in a statement.

At the Mercedes-Benz cars arm, the third quarter brought a four-percent drop in unit sales to 795,000 vehicles, and a seven-percent drop in revenue.

But the flagship division’s operating profit tumbled 35 percent over the quarter as it faced “ongoing governmental proceedings and measures taken for diesel vehicles”, the group said.

Zetsche nevertheless said the group was “confident” of ending the year on a high note thanks to robust demand.

Daimler’s share price rose 2.5 percent to 51.24 euros in mid-day trading in Frankfurt, outperforming a DAX blue-chip index that was up 0.30 percent.

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