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Daimler Slips To Loss In Q2; Sees Significant EBIT Growth In H2: Stock Up

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German automaker Daimler AG (DDAIF.PK) reported Wednesday a net loss in its second quarter, compared to prior year's profit on charges, despite increased revenues. Unit sales meanwhile declined from last year. Looking ahead, the company projects significant improvement in EBIT in the second half of year. For the year 2019, the company projects slightly higher revenues and flat unit sales, while Group EBIT is expected to be significantly below the prior-year level. Daimler shares were gaining around 3 percent in German trading.

Ola Källenius, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, said, "... our focus for the second half of this year is on improving our operating performance and cash-flow generation. In general, we are intensifying the Group-wide performance programs and reviewing our product portfolio in order to safeguard future success."

For the second quarter, net loss attributable to the shareholders was 1.3 billion euros or 1.24 euros per share, compared to net profit of 1.7 billion euros or 1.61 euros per share in the prior year. The latest-quarter results were mainly impacted by exceptional items of 4.2 billion euros.

Group EBIT was loss of 1.6 billion euros, compared to profit of 2.6 billion euros last year. Mercedes-Benz Cars' EBIT was negative, while Daimler Trucks' EBIT climbed 33 percent.

Revenue for the quarter was 42.7 billion euros, an increase of 5 percent from last year's 40.8 billion euros. Adjusted for positive exchange-rate changes, revenue was slightly higher than the prior year.

The total unit sales declined 1 percent to 822 thousand passenger cars and commercial vehicles from the previous year's 833 thousand vehicles.

Mercedes-Benz Cars revenue decreased 1 percent to 22.3 billion euros, and unit sales fell 3 percent to 575,639 vehicles.

Daimler Trucks' Revenue increased 14 percent and unit sales grew 2 percent. Mercedes-Benz Vans' revenue was 4 percent higher, while unit sales were flat. Daimler Buses recorded double-digit percentage growth in both revenue and unit sales.

Looking ahead, for fiscal 2019, Mercedes-Benz Cars estimates flat revenue, while Mercedes-Benz Vans and Daimler Trucks aim to achieve slightly higher revenue. Daimler Buses expects significant revenue growth.

In Germany, Daimler shares were trading at 49.58 euros, up 3.19 percent.

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