BERLIN (dpa-AFX) - German automaker Daimler AG (DDAIF.PK) issued a profit warning, saying Chinese retaliatory import duties on vehicles built in the U.S. would hit sales and profits of the SUVs it builds at its Alabama factory.
'From today's perspective, the decisive factor is that, at Mercedes-Benz Cars, fewer than expected SUV sales and higher than expected costs - not completely passed on to the customers - must be assumed because of increased import tariffs for US vehicles into the Chinese market. This effect cannot be fully compensated by the reallocation of vehicles to other markets,' Daimler said.
As another decisive factor, a negative effect on earnings is to be expected in the second half of the year in connection with the new certification process WLTP or Worldwide Harmonized Light Vehicles Test Procedure. Furthermore, earnings at Mercedes-Benz Vans are affected in connection with the recall of diesel vehicles. Additionally, earnings at Daimler Buses are negatively affected by the declining demand in Latin America.
For 2018, Daimler now expects Group earnings before interest and taxes or EBIT to be slightly below the previous year's level. Previously, it expected Group EBIT to be slightly higher than in the previous year.
For 2018, Daimler now expects EBIT or earnings before interest and taxes at its Mercedes-Benz Cars division to be slightly below the previous year
The company projects annual EBIT at Mercedes-Benz Vans division to be significantly below the previous year's level, and at Daimler Buses division to be in the magnitude of the previous year.
Copyright RTT News/dpa-AFX