Daimler slashes 2019 profit forecast after second-quarter loss

Shareholders crowd around a Vision Urbanetic self-driving van by Mercedes-Benz on display during Daimler’s annual general meeting on May 22, 2019 in Berlin. (AFP)
Updated 12 July 2019
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Daimler slashes 2019 profit forecast after second-quarter loss

  • Daimler already downgraded its outlook on June 23, penciling in flat earnings instead of a slight increase

FRANKFURT AM MAIN: German auto giant Daimler, maker of Mercedes-Benz, on Friday slashed its 2019 profit forecast for the second time in a few weeks, after booking a $1.8 billion (€1.6 billion) operating loss in the second quarter.
By comparison, between April and June last year, the Stuttgart-based group chalked up operating profit of €2.6 billion.
But unforeseen events, including a mass recall over faulty airbags and government probes and legal cases related to the “Dieselgate” emissions cheating scandal, prompted the company to set aside more cash in provisions and increase estimated costs for the year, Daimler said in a statement.
That meant the carmaker now expects to book an annual operating profit “significantly below” the €11.1 billion recorded in 2018, it said.
Daimler already downgraded its outlook on June 23, penciling in flat earnings instead of a slight increase as it tackled the fallout from the “Dieselgate” scandal that had forced it to set aside hundreds of millions of euros in provisions.
The previous day, Germany’s KBA road transport authority ordered the company to recall 60,000 vehicles it suspected were fitted with software to reduce harmful emissions under lab testing conditions.
Last year, the office had already ordered the recall of 700,000 Daimler-made vehicles worldwide over illegal software.
As well as the one-off events, Daimler said it was making slower progress bringing new models to market, while demand worldwide is less robust than expected.
And changes to the product line-up in its Vans division — one of those affected by recalls — will generate additional costs of €500 million, the company said.


Libya’s NOC confirms 290,000 bpd production at Sharara offline

Updated 57 min 35 sec ago
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Libya’s NOC confirms 290,000 bpd production at Sharara offline

  • NOC said it was conducting a full-scale investigation into suspected closed valves in the Hamada area
  • It also said in a statement that production from El Feel oilfield was unaffected by the incident

LONDON: Libya’s National Oil Corporation confirmed on Saturday that production at its 290,000 barrels per day El Sharara oilfield was currently offline.
NOC said it was conducting a full-scale investigation into suspected closed valves in the Hamada area.
It also said in a statement that production from El Feel oilfield was unaffected by the incident.
Sources earlier told Reuters that production at El Sharara had halted on Friday due to a valve closure on the pipeline linking the field to Zawiya.