Daimler shares fell as diesel costs wipe out profit growth
FRANKFURT - Daimler shares fell as much as 5% on Monday after the German automaker cut its profit forecast for the third time in 12 months, saying it was setting aside hundreds of millions of euros to cover a regulatory crackdown on diesel emissions.
“The endless array of so-called one-time effects raises questions regarding process, management information systems and ultimately accountability of management.” In May, German competitor BMW warned on profits, citing higher than expected investments, while Volkswagen said the return on sales at its passenger cars division would come in at the lower end of its target.
However, the profit warning - announced late Sunday - followed news that Daimler must recall 60,000 Mercedes diesel cars in Germany after regulators found they were fitted with software aimed at distorting emissions tests.Stuttgart-based Daimler is being investigated over diesel emissions in Europe and the United States. It issued a similar profit warning on diesel issues in October.
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