Earnings

Daimler second-quarter hammered by Takata, diesel charges

Key Points
  • Luxury carmaker Daimler said it would intensify cost cuts after legal risks for diesel-related issues and the cost of replacing Takata airbags triggered a 1.56 billion euros ($1.74 billion) loss before interest and taxes in the second quarter.
  • The German company said 4.2 billion euros in one-off expenses contributed to the operating loss in the quarter.
  • It compared with a 2.6 billion profit in the same period last year.
The windows at the corporate headquarters of Daimler AG in Untertürkheim are illuminated.
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Luxury carmaker Daimler said it would intensify cost cuts after legal risks for diesel-related issues and the cost of replacing Takata airbags triggered a 1.56 billion euros ($1.74 billion) loss before interest and taxes in the second quarter.

The German company said 4.2 billion euros in one-off expenses contributed to the operating loss in the quarter, compared with a 2.6 billion profit in the same period last year.

"In general, we are intensifying the Group-wide performance programs and reviewing our product portfolio in order to safeguard future success," Chief Executive Ola Kaellenius said in a statement on Wednesday.

Earlier this month, the Stuttgart-based carmaker pre-released earnings in what amounted to its fourth profit warning in 13 months, saying its 2019 group EBIT would be "significantly" lower than last year.