Daimler Books First Quarterly Loss In 10 Years In Q2
Sumaira FH Published July 24, 2019 | 11:47 AM
Mercedes-Benz maker Daimler on Wednesday reported its first quarterly loss in almost 10 years, saying cash it had to set aside over emissions cheating and vehicle recalls drove it into the red
Frankfurt am Main, (UrduPoint / Pakistan Point News - 24th Jul, 2019 ) :Mercedes-Benz maker Daimler on Wednesday reported its first quarterly loss in almost 10 years, saying cash it had to set aside over emissions cheating and vehicle recalls drove it into the red.
The Stuttgart-based car maker said in a statement it lost 1.2 billion Euros ($1.3 billion) in April-June due to one-off effects totalling 4.2 billion euros.
The last time Daimler reported a quarterly loss was in the fourth quarter of 2009.
"Our second-quarter results were mainly impacted by exceptional items," newly-installed chief executive Olla Kallenius said.
By contrast, revenues rose by five percent to a higher-than-expected 42.7 billion euros, despite a one percent fall in unit sales.
Daimler also tumbled into the red on the operating level, losing 1.5 billion euros -- compared with underlying profit of 2.6 billion euros a year ago.
Looking ahead, "our focus for the second half of this year is on improving our operating performance and cash-flow generation," Kallenius said.
After cutting its annual outlook twice in recent months, Daimler left the forecast unchanged this time around, predicting operating profit "significantly below" the 11.1 billion euros booked in 2018.
The auto giant pointed to weaker-than-expected growth on global car markets, fallout from the diesel emissions cheating scandal and a mass recall over faulty Takata airbags.
German transport authority KBA ordered the recall of 60,000 Mercedes-Benz vehicles in June on suspicion they were fitted with software to cheat emissions tests -- allegations Daimler contests.
Diesel-related provisions alone are expected to reach around 1.6 billion euros, and the airbag recall should cost around one billion euros.
The group is also looking to make massive investments in electric vehicles and autonomous driving.
Nevertheless, both unit sales and revenue should climb "slightly above" last year's levels.
Related Topics
Recent Stories
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
Osaka seals first win on clay since 2022 in Madrid
Earthquake jolts Karachi
Sindh minister orders operation after attack on police in Ghotki
TikTok to fight US ban law in courts
More Stories From Business
-
Mired in crisis, Boeing reports another loss
4 hours ago -
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
4 hours ago -
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
4 hours ago -
European stocks lose momentum after global rally
5 hours ago -
New pulses varieties imperative to cater domestic food requirements: Dr Khalid Hasan
6 hours ago -
CEO KP-EZDMC meets CRBC officials
6 hours ago
-
Pakistan among nine poor countries that produces 90 percent cigarettes for world
6 hours ago -
Chief Minister Gilgit Baltistan Haji Gulbar Khan calls on Minister for Privatisation
7 hours ago -
Germany nudges up growth forecast, ailing economy at 'turning point'
7 hours ago -
Revised UAF budget recommended
7 hours ago -
IDEA, TEVTA organizes Job Fair for youth
7 hours ago -
Massive financial, administrative scam unearthed at SCCI
7 hours ago