Daimler warns of second-quarter profit significantly below expectations

Andreas Rentz | Getty Images News | Getty Images

Luxury carmaker Daimler on Friday warned investors that it expected a second-quarter loss before interest and taxes of 1.6 billion euros ($ 1.80 billion) after a 2.6 billion profit posted in the year earlier period.

Daimler said it now expects group earnings before interest and taxes (EBIT) to be significantly below the prior year level, compared to a previous guidance of EBIT of the same magnitude as a year earlier.

Provisions for an extended recall in connection with Takata airbags will increase by around 1 billion euros, Daimler said.

The carmaker also took a hit of 1.6 billion euros following a reassessment made in connection with ongoing governmental and court proceedings and measures relating to Mercedes-Benz diesel vehicles.

“A decision by the Board of Management in the context of the product portfolio review and prioritization, which was taken today, will affect earnings of the Mercedes-Benz Vans division in the second quarter (of) 2019 by around 0.5 billion euros,” Daimler added.

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