By Pietro Lombardi
Daimler AG said on Wednesday that its earnings almost halved last year and it would book additional expenses of up to 1.5 billion euros related to Mercedes-Benz’s diesel issue.
Group earnings before interest and taxes were EUR5.6 billion in 2019 compared with EUR11.1 billion a year earlier, the German premium car maker /zigman2/quotes/205332368/delayed DE:DAI +1.22% said. Figures are preliminary.
The results don’t include expected expenses of between EUR1.1 billion and EUR1.5 billion related to Mercedes diesel issue, it said.
EBIT fell sharply at the company’s Mercedes-Benz Cars business, declining to EUR3.7 billion from EUR7.2 billion a year earlier. Return on sales in the unit fell to 4.0% from 7.8%.
In the vans unit, the company had an Ebit loss of EUR2.4 billion, compared with a profit of about EUR300 million a year earlier.
The company had warned in July that the Ebit for the year would be “significantly below” the prior year level.