Daimler AG sees Q2 Group EBIT (EUR1.6B) vs. EUR2.6B last year
Daimler AG said in a statement that it has achieved a Group EBIT for the second quarter 2019 that is significantly below market expectations. Group EBIT sums up to EUR minus 1.6 billion vs. EUR 2.6 billion last year. The following major items had an impact on EBIT: New information lead to a revised risk assessment with regard to provisions for an extended recall in Europe and Rest of World in connection with Takata airbags. Provisions had to be increased by around EUR 1.0 billion. In addition, EBIT was impacted by a reassessment made today in connection with ongoing governmental and court proceedings and measures relating to Mercedes-Benz Diesel vehicles in various regions, which lead to an increase in expected expenses by around EUR 1.6 billion. Finally, a decision by the Board of Management in the context of the product portfolio review and prioritization, which will affect earnings of the Mercedes-Benz Vans division in the second quarter 2019 by around EUR 0.5 billion.