BERLIN (dpa-AFX) - German auto giant Daimler AG (DDAIF.PK) said Thursday that it has increased the provision for EU antitrust proceedings by 600 million euros, or $738 million, which will impact its reported earnings for the fourth quarter. However, the company added that its fiscal 2014 earnings outlook for ongoing business remains unchanged.
Daimler, the maker of Mercedes-Benz cars, said that in connection with the ongoing EU Commission antitrust proceedings concerning European commercial vehicle manufacturers, it has decided to increase the provision by 600 million euros. The company noted that figure is preliminary and unaudited.
The provision will be taken into account in the group earnings before interest and tax or EBIT for the fourth quarter as a special reporting item. Daimler first made a provision in 2011 in connection with the antitrust proceedings.
Daimler said that the EU Commission delivered its statement of objections to the company at the end of November 2014. The company decided to increase the amount of the provision after reviewing relevant documents on which the EU Commission bases its accusations.
Daimler said that while it is cooperating with the authorities, it will safeguard its rights in the further proceedings. The company added that it is reviewing all of its procedural options.
Daimler was among the several European commercial vehicle makers that received formal antitrust complaints from the European Commission in November for suspected price fixing.
In late October, Daimler reported a 49 percent jump in its third-quarter profit, boosted by a one-time gain, as well as higher revenues and unit sales mainly in Mercedes-Benz Cars division, despite weak domestic revenues.
For the third quarter, net profit attributable to the shareholders climbed to 2.74 billion euros or 2.56 euros per share from 1.84 billion euros or 1.72 euros per share in the year-ago period. Revenue grew 10 percent to 33.12 billion euros from 30.10 billion euros in the prior-year quarter.
At that time, Daimler said it continues to expects revenue for 2014 to increase significantly, with above-average growth rates in North America and China. On the basis of the anticipated market development, Daimler also affirmed its outlook for EBIT from ongoing business and unit sales to increase significantly in 2014.
On Frankfurt's Xetra, Daimler's shares are trading at 68.41 euros, up 1.24 euros or 1.85 percent on a volume of 2.91 million shares.
Copyright RTT News/dpa-AFX