Daimler third-quarter profit falls on diesel engine upgrades

Earnings before interest and tax at the German automotive group plunged 14 percent to €3.46 billion in the July-to-September period. (Reuters)
Updated 20 October 2017
0

Daimler third-quarter profit falls on diesel engine upgrades

BERLIN: Daimler’s third-quarter operating profit declined, as the cost of making diesel engine cars run cleaner and other special items outweighed record sales of Mercedes-Benz luxury models.
Earnings before interest and tax (EBIT) at the German automotive group plunged 14 percent to €3.46 billion in the July-to-September period, Daimler said on Friday, in line with the €3.43 billion consensus forecast in a Reuters poll of banks and brokerages.
Daimler last quarter spent about €220 million to update over €3 million current and older Mercedes diesel models in Europe to curb pollution and help avert driving bans.
The cars and trucks manufacturer stuck with its guidance for a significant increase in group EBIT this year. It said it now expected EBIT at its trucks division to also significantly exceed year-ago levels, having previously guided for flat EBIT.


Once mighty US retailer Sears files for bankruptcy

Updated 5 min 20 sec ago
0

Once mighty US retailer Sears files for bankruptcy

  • Sears had been drowning in debt and reportedly could not afford a $134 million repayment
  • Started in 1886, the company was a pioneer of departmental stores that catered to everyone

WASHINGTON: Sears, the venerable US chain that once dominated the retail sector but had been in decline since the advent of the Amazon era, filed for bankruptcy Monday and announced it was closing almost 150 stores.
With a history that stretches back to 1886, the company was a pioneer of departmental stores that catered to everyone and by the mid-twentieth century had built a vast empire that stretched across North America.
But it has closed hundreds of outlets in recent years amid a retail shakeout caused in part by the rise of Amazon and other e-commerce players.
“The Company and certain of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York,” a statement by Sears Holdings Corporation said.
Sears had been drowning in debt and reportedly could not afford a $134 million repayment that had been due on Monday.
Edward S. Lampert, Chairman of Sears Holdings, said the insolvency filing would give the company the “flexibility to strengthen its balance sheet” and enable it to accelerate a strategic transformation.
The company said it intended to reorganize around a smaller store platform, a strategy it said would help save tens of thousands of jobs.
But it announced it would close 142 unprofitable stores near the end of the year, in addition to the previously announced closure of 46 stores by November.
While retaining his chairmanship, Lampert will step down as CEO, with the role handled by other senior executives as part of a new “Office of the CEO.”
Sears added it had received commitments for $300 million in debtor-in-possession financing and was negotiating for an additional $300 million.
Sears is far from the only brick-and-mortar outlet to fall by the wayside as more consumers do the bulk of their shopping online.
In March, iconic Toys “R” Us announced it was shuttering all of its US outlets while other big names such as Macy’s and JC Penney have also been forced to close numerous locations and lay off workers.
American shopping malls in turn have been forced to turn to a new generation of stores, food and entertainment including players that began online, as well as gyms and video game bars like Dave & Buster’s.