Mercedes Benz Group AG (MBGAF)

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What is going on there????? CORRECTED-Daimler warns of Q2 operating loss

2 MIN READ

(Corrects headline to Q2 operating loss from Q2 profit below expectations)

FRANKFURT, July 12 (Reuters) - Luxury carmaker Daimler on Friday warned investors that it expected a second-quarter loss before interest and taxes of 1.6 billion euros ($1.80 billion) after a 2.6 billion profit posted in the year earlier period.

Daimler said it now expects group earnings before interest and taxes (EBIT) to be significantly below the prior year level, compared to a previous guidance of EBIT of the same magnitude as a year earlier.

Provisions for an extended recall in connection with Takata airbags will increase by around 1 billion euros, Daimler said.

The carmaker also took a hit of 1.6 billion euros following a reassessment made in connection with ongoing governmental and court proceedings and measures relating to Mercedes-Benz diesel vehicles.

“A decision by the Board of Management in the context of the product portfolio review and prioritization, which was taken today, will affect earnings of the Mercedes-Benz Vans division in the second quarter (of) 2019 by around 0.5 billion euros,” Daimler added. ($1 = 0.8873 euros) (Reporting by Arno Schuetze Editing by Michelle Martin)

https://www.reuters.com/article/daimler-results/corrected-daimler-warns-of-q2-operating-loss-idUSFWN24C0T6