On Wednesday, Daimler will present its financial results for the second quarter of 2012, with analysts expecting weaker numbers than previously reported.
The signs are there: unable to avoid high pressure on various markets, Daimler is planning to offer discounts on its latest A-Class model. Experts also point out that Daimler’s profits will be affected by the introduction of new models.
To make matters worse, Daimler also has to face falling sales in Europe and Latin America, with its bus division struggling as well. That being said, there’s a very slim chance of profit growth in the second quarter for the German manufacturer.
Daimler is now more skeptical on its prospects, given the slowing economy. In 2011, Daimler had reported a profit of some €9 billion. In the second quarter of 2012, earnings before interest and taxes (EBIT) are expected to grow by eight percent to almost €2.2 billion.
Daimler sold 131,139 cars in June, only 0.2 percent more than in the previous month. A rather worrying sign, as the company had reported double-digit growth rates in the first quarter.
However, with 2012 declared as a year of transition, Daimler looks confidently to the future. It plans to launch 10 new models by 2015. But this costs money: in 2012 and 2013 Daimler will spend €10.9 billion in R&D, with a further €10.6 billion to be invested in its plants.
by Dan Mihalascu
) - Monday, July 23rd, 2012 - filed under Industry
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