Daimler has come up with a new profit warning. The parent company of Mercedes-Benz is counting on extra costs in connection with the settlement of the Diesel Gate scandal that affected not only the car industry but also the brand directly.
Also the sales of vans are disappointing due to delays in the delivery of vehicles. The group now expects a gross profit (ebit) which is “significant” below the level of last year, although the prognosis was slightly lower than in 2017. The estimates for the passenger car division of Mercedes-Benz and the bus branch have also become more pessimistic.
The reaction at the stock exchange in Frankfurt was rough. The price of Daimler shares went down by 7 percent in the interim. In June, Daimler had already given a profit alert. That had to do with the Chinese import tariffs on American cars.
Daimler also came with preliminary figures for the third quarter. According to the Stuttgart company, the performance was significantly weaker than predicted by the market. The gross profit fell to almost 2.5 billion euros in the past period, from 3.4 billion euros a year earlier. Daimler did good business with the truck division.
Last month it was announced that Daimler CEO Dieter Zetsche will resign early next year. Zetsche is succeeded in May by the Swede Ola Källenius, who is still head of development. Källenius becomes the first non-German to come to the head of the car company.
BMW’s German counterpart also came with a profit alert in September, due to price pressure and the world’s trading tensions. The costs for new emission standards also weigh on profitability, according to BMW.