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Jan. 22, 2020, 4:17 a.m. EST

Daimler 2019 earnings sink and automaker sees diesel-related expenses

By Pietro Lombardi

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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 (FRA:DE:DAI)  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.

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