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Daily Digit: Daimler's earnings plunge

Wednesday, April 24, 2013 - 01:15

April 24 - German automaker Daimler scrapped its 2013 earnings forecast after its first-quarter profit tumbled by more than half. PSA Peugeot Citroen has also been hit by weak demand in Europe and saw its first quarter sales slump 6.5 %. Joanna Partridge reports

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917 million euros is today's daily digit in Europe. Daimler's first quarter earnings before interest and tax, which came in below analysts' forecasts. It's also less than half the previous year's 2.1 billion euros. A slump in demand for cars and trucks in Europe, the German automaker's core market, is largely to blame. Daimler scrapped its 2013 earnings forecast on the results. It now expects them to be less than last year's 8.12 billion euros, instead of matching them. Daimler has fallen behind its German rivals, unable to match their scale of smaller cars, or their success in China. But BMW and VW also expect group earnings to be flat this year. VW saw its first quarter profit tumble. Struggling French car maker PSA Peugeot Citroen saw its sales slump by 6.5% in the first quarter. It's already cutting 8000 jobs and closing an assembly plant. It will now ask the unions for further cost-saving concessions in order to meet turnaround targets. It hopes to break even by late 2014 and return to profit the following year.

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Daily Digit: Daimler's earnings plunge

Wednesday, April 24, 2013 - 01:15