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Daimler is recovering (somewhat) from the diesel crisis

2019-10-24T08:34:47.145Z

In mid-2019, Daimler made losses in the billions, now the group has caught something again - and again sold more cars. But the truck sector is already threatening new trouble.




Provisions, recalls, processes and bad economy: At 1.6 billion euros was at Daimler the loss in the second quarter. After this shock in the summer, the Swabian automaker has now stabilized again.

Earnings before interest and taxes increased in the third quarter now by eight percent to 2.7 billion euros. Sales increased by 8 percent year-on-year to 43.3 billion. Experts therefore expect the group to be able to pay out a dividend again. Daimler shares gained in value on the stock market at the beginning of trading by a good four percent.

Reason for the upswing were good sales figures for cars and vans, said Daimler CEO Ola Källenius for the now expired third quarter. However, the Swede also said: "In order to master the transformation over the next few years, we still need to increase our efforts considerably."

Need additional money for diesel scandal?

Just how exactly he wants to do that has not been said by the CEO, who has been in office since May. Källenius referred to steps that the Group intends to present in mid-November with regard to its strategy and the announced savings program.

The operating return for the most important division of Mercedes-Benz passenger cars fell by 0.3 percentage points to six percent. Exchange rate influences and higher costs for new technology and models had a negative impact. All in all, the sector's profit rose only slightly.

Christoph Schmidt / dpa

Daimler CEO Ola Källenius: Transformation program to be presented in November

However, the next problems are already evident in the particularly cyclically sensitive lorry division. Because the economy is slowing in North America and Europe, the Group can not keep its goals in the division this year. In the third quarter, the return on sales of the Trucks division was one percentage point below the previous year's figure. Already in the final quarter, the business area will be burdened with earnings.

The company has made progress in its financial position, which analysts and investors are also concerned about. However, Daimler warned that educated reserves for official and judicial procedures as well as investigations into diesel exhaust gases could not be sufficient. As a result, additional expenses could arise.

Daimler had in the first half of billions for the problems of suspected illegal diesel exhaust technology by the side. However, in the third quarter, an 870-million-euro fine by the Stuttgart public prosecutor had already been imposed in the course of the diesel investigation against the group. In October, a new compulsory recall for hundreds of thousands of other cars was added, which, from the point of view of the authorities, are driving with illegal exhaust technology.

Source: spiegel

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