Daimler 1Q Earnings Dropped, Outlook Confirmed

   By Max Bernhard 
 

Daimler AG (DAI.XE) said Friday that its earnings slumped in the first quarter, but backed its guidance for the year ahead.

Net profit fell to 2.10 billion euros ($2.34 billion) in the period from EUR2.27 billion a year earlier.

Revenue edged lower to EUR39.70 billion, from EUR39.79 billion.

Earnings before interest and taxes dropped to EUR2.80 billion from EUR3.3 billion a year earlier. Earnings at Daimler's core Mercedes-Benz passenger-car unit were lower due to lower unit sales and changes in the sales structure, it said. Earnings at its trucks division were hit by higher raw-material prices and supply-chain bottlenecks.

Industrial free cash flow swung to negative EUR2.0 billion, from positive EUR1.8 billion a year ago.

The maker of Mercedes-Benz cars confirmed its 2019 guidance, expecting slight growth in unit sales, revenue and earnings.

"We had a comparatively weak start to the year and face numerous challenges along the entire value chain in all our automotive divisions. This had a negative impact on unit sales and earnings," said Chief Financial Officer Bodo Uebber.

Write to Max Bernhard at [e-mail]; @mxbernhard

(END) Dow Jones Newswires

April 26, 2019 02:04 ET (06:04 GMT)

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