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Daily Digit: Daimler may cut 2013 outlook

Wednesday, April 10, 2013 - 01:28

April 10 - German car maker Daimler says it might have to cut its 2013 profit expectations later in April, as Europe's car market shrinks at an alarming rate. It's also fallen far behind its rivals BMW and Audi in China. Daimler originally hoped its flat adjusted operating profit for 2013 would be 8.1 billion euros. Joanna Partridge reports

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8.1billion euros is today's Daily Digit in Europe. That was Daimler's adjusted operating profit in 2012 and the level it expected to achieve in 2013. But the German car maker says it may now cut that outlook due to poor car sales in Europe. Swiss bank Credit Suisse says even its own conservative estimate of 7.9 billion euros might be at risk. Europe's car market has shrunk at an alarming rate in the first three months of the year. Daimler's flagship Mercedes-Benz brand is also lagging behind its home-grown competitors BMW and Audi in China. Daimler and other global car makers may not be able to rely on India for growth any more. Annual car sales there have fallen for the first time in a decade. Two years ago India was the world's hottest growth market after China, but that's all changed due to high interest rates and rising fuel prices, leaving showrooms full of unsold cars. Daimler's latest profit warning is another to the credibility of CEO Dieter Zetsche, who's been in the role since 2006. Investors aren't happy that Daimler stock is broadly flat, while Volkswagen's has tripled and BMW shares are up around 80%. Daimler will report its first quarter results on April 24, when it will reassess its previous forecasts for 2013.

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Daily Digit: Daimler may cut 2013 outlook

Wednesday, April 10, 2013 - 01:28