Daimler has reported a net loss of €1.2 billion for the 2019 second quarter in the wake of a diesel emissions breach and the gloabal Takata airbag recall.
It’s the German multinational’s first quarterly loss in nearly 10 years with a 1% decline in total unit sales for all vehicles for the quarter with 822,000 total unit sales compared to 833,000 in the same period last year.
This was led by passenger vehicles with a 3% decline in Mercedes-Benz Cars with 575,639 vehicles sold in the quarter compared to 590,690 in the same period last year.
Total revenue was up 5% to €42.7 billion in the quarter compared to €40.8 billion in the same period last year. Earnings before interest and tax (EBIT) was down €1.6 billion for the quarter.
However, commercials are still steady with Daimler Trucks showing an increase in unit sales of 2% to 126,474 vehicles in the second quarter compared to 123,910 in the same period last year.
Truck revenue increased by 14% to €10.5 billion and EBIT was up 33% to €725 million and return on sales was 6.9%.
Daimler Buses also saw sales growth by 12% to 8,435 units in the second quarter. Revenue increased by 18% to €1.3 billion and EBIT was up 61% to €106 million. Return on sales improved to 8.4%.
Mercedes-Benz Cars’ revenue decreased by 1% to €22.3 billion and its EBIT slipped to minus €672 million. Return on sales was minus 3%.
Mercedes-Benz Vans’ unit sales were flat at 111,118 vehicles for the quarter compared to 110,883 in the same period last year. Revenue was 4% higher at €3.7 billion while EBIT decreased to minus €2,050 million. Return on sales fell to minus 56.1%.
Ola Källenius , Daimler AG board of management chairman and head of Mercedes-Benz Cars, says the “focus for the second half of this year is on improving our operating performance and cash-flow generation”.
“In general, we are intensifying the group-wide performance programs and reviewing our product portfolio in order to safeguard future success. At the same time, we are continuing consistently our company transformation,” Källenius says.
