Daimler lowers 2013 profit forecast due to dismal Q1 performance

Article by Anita Panait, on April 27, 2013

Daimler has lowered its profit forecast for full year 2013 after posting a 56-percent drop in earnings before interest and taxes (EBIT) in the first quarter of the year. Daimler disclosed in a statement that its EBIT dropped to EUR917 million in the first three months of 2013, compared to EUR2.1 billion in the same period in 2012.

As a result of the decline, Daimler now expects to post a full-year 2013 EBIT lower than the EUR8.1 billion ($10.6 billion) posted in 2012. The carmaker previously expected to match its 2012 results. Daimler chief executive Dieter Zetsche attributed the decline to several markets developing worse than expected due to economic reasons.

The company’s Mercedes cars division logged a 63-percent decline in first-quarter sales to EUR460 million and a 6-percent drop in revenues to EUR14.1 billion. Mercedes saw its return on sales slide to 3.3 percent from 8.2 percent a year ago. Daimler expects the unit to post a drop in earnings for the full year 2013.

Daimler Chief Financial Officer Bodo Uebber made a warning that their business could still suffer to some setbacks in Europe this year. He remarked that the crisis is not yet over, and that it is having a negative effect on investments and purchasing behavior. Christian Ludwig, an analyst with Bankhaus Lampe, described Daimler’s results as “a little disappointing.”

He said that 2013 will probably be another transition year, which will not have “any positive impulses for the share price.” He noted that Daimler's guidance remains “quite vague." Daimler still expects its earnings to surge in the second half of 2013 as it anticipates better sales thanks to the recently launched Mercedes CLA compact and a revamped version of the E class. Uebber said that Daimler’s results in the second quarter of 2013 should be better than in the first three months.

Topics: daimler, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries