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Daimler profit slumps on diesel refit costs

Europe
20.10.2017
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Berlin (dpa) - Shares in German carmaker Daimler rose on Friday, despite the world‘s biggest maker of luxury cars reporting a 14-per-cent slump in third-quarter profit as result of the costs of upgrading its diesel-powered vehicles.

The manufacturer of Mercedes Benz vehicles said third-quarter profit before interest and taxes (EBIT) fell to 3.46 billion euros (4.1 billion dollars) compared to 4.04 billion euros in the same period last year.

The drop in earnings came after the carmaker spent 223 million euros on refitting more than 3 million diesel vehicles across Europe amid moves by authorities to take action to improve urban air quality.

The costs also form part of a wider effort by the German car industry to restore public confidence in diesel-powered vehicles following the scandal triggered by revelations that Volkswagen cheated on pollution tests.

Daimler shares, however, rose 1 per cent 69.60 euros following the release of the third-quarter report.

Stuttgart-based Daimler said a 21-per-cent increase in research and development costs to 2.3 billion euros from 1.9 billion euros a year earlier also weighed on third-quarter earnings.

The weaker earnings also came despite a 6-per-cent gain in third-quarter revenue to 40.8 billion euros thanks in part to strong demand in the world‘s biggest car market in China.

Daimler said third-quarter net profit fell, declining to 2.27 billion euros from 2.73 billion euros a a year ago.

 

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