5/22, 10:17 AM (Source: TeleTrader)
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Chart for: DAIMLER AG NA O.N.

Daimler CEO: All costs under scrutiny

Daimler's outgoing CEO Dieter Zetsche stated on Wednesday that all of the carmaker's costs are "under scrutiny" as a result of the company's disappointing first-quarter results.

"Everything is under scrutiny: fixed and variable costs, material and personnel costs, investment projects, vertical integration and the product range," Zetsche said in a statement ahead of Daimler's annual general meeting. Zetsche is set to hand over the position of CEO to Ola Kaellenius at the end of the annual meeting.

Earlier, Handelsblatt reported that Kaellenius has been working on a plan to cut administration costs by about 20% in an effort to meet its profit margin targets amid global trade tensions. In April, Daimler said its net profit for the first three months of 2019 fell by 9% year on year to €2.1 billion and added its sales were down by 4% compared to the first quarter of 2018. At the time, Zetsche noted the company was "not satisfied" with the "moderate" start to the year and will work hard to achieve its 2019 targets.

Breaking the News / NP