The automaker Daimler reported on Tuesday a fall in its annual net profit of 64% to 2.71 billion euros (2.89 billion francs) under the effect of provisions related to “dieselgate” while turnover increased by 3%.
“We cannot be satisfied with the profit,” said Ola Källenius, head of the group, quoted in a statement, citing significant exceptional charges.
In total, 5.5 billion euros linked to both the scandal of engine rigs and massive recalls of cars with airbags from the supplier Takata weighed on the result, including 4.0 billion for “administrative procedures and diesel cars ”.
Today, we’re reporting our business figures for 2019. #Daimler $ DDAIF
Thread ????
– Daimler AG (@Daimler) February 11, 2020
Dividend down
The management board offers a dividend of only 90 cents, 72% less than in 2018, and much less than expected by analysts who expected 1.53 euros. EBIT operating profit stands at 4.3 billion euros, or 61% lower than 2018. The first year of the new boss Ola Källenius, who took the head of the group at the end of May after 13 years of Dieter Zetsche’s reign, was littered with bad news.
Already in July, Daimler had posted its first quarterly net loss in 10 years and warned in late January that annual results would be “below expectations” due to provisions.
The German automobile agency (KBA) has ordered Daimler to recall nearly a million cars, but the automaker still challenges the illegality of the “engine management functions” pinned down by the authorities.
Strong fine
In late September, the company agreed to pay a fine of 870 million euros for selling non-compliant vehicles – an expense recorded in the second quarter. Expenses mainly weighed on the automotive divisions Mercedes-Benz Cars and Mercedes-Benz Vans.
The latter even posted an operational loss of 3.1 billion euros while the EBIT of the Cars branch was halved, to 3.4 billion. These results come in an already difficult context for the German automobile, engaged in an expensive electrification business.
To meet these costs, Ola Källenius has already promised last year 1.6 billion euros in savings including 1.4 billion on staff with more than 10,000 job cuts out of the 300,000 that counts the group in the world. (Ps / nxp)
Created: 11.02.2020, 08h53
–
