6/24/2019, 5:09 AM (Source: TeleTrader)
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Daimler reduces earnings expectations for 2019

German auto industry giant Daimler AG revised downwards its earnings expectations for the 2019 fiscal year. The firm's earnings before interest and taxes (EBIT) are now expected to be flat year-over-year, while the previous assessments said that a slight increase in EBIT should be expected.

The carmaker stated that the increase in expenses concerning "various ongoing governmental proceedings and measures" should be blamed for the revision of the estimates. The costs of these proceedings over Mercedes-Benz's diesel vehicles increased by "high three-digit million amount," the company said.

Earlier, the media reported that Daimler is being investigated by German authorities over the alleged use of software that helped some Mercedes Benz vehicles cheat on pollution tests by reducing emissions of nitrogen oxide in test conditions. Recently, Daimler said it will recall 60,000 vehicles equipped with software for skewing data on diesel emissions.

Baha Breaking News (BBN) / MA