Daimler: 2018 earnings miss and 2019 forecast disappoints

(CercleFinance.com) - Daimler has reported 2018 results that are below analysts' estimates, hurt by the slowdown in auto sector, with the group having delivered a disappointing outlook for 2019.


The German car maker achieved EBIT of 11.1 billion euros last year, which is significantly below the level of 2017 (14.3 billion euros).

Its net profit also decreased, falling to 7.6 billion euros, from 10.6 billion euros in 2017.

"For Daimler, 2018 was a year of strong headwinds - with the ongoing diesel debate, the changeover to the new WLTP test method and the global trade dispute," said Chairman Dieter Zetsche.

Yet, group unit sales were up by 2.4% to 3.4 million, while revenue rose by 2% to 167.4 billion euros.

For 2019, Daimler said it is aiming at slight increases in unit sales and revenue , with EBIT "slightly above prior-year level."

This outlook is below consensus, analysts at UBS say, thinking that the guidance will likely trigger 5-10% downgrades in analysts' estimates.

The market's reaction this morning appeared to prove them right. The shares of Daimler are currently down 2.4% in Frankfurt.

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