Daimler warns on 2019 profit outlook as diesel issues bite

Daimler cut its 2019 earnings outlook on Sunday after lifting provisions for issues related to its diesel vehicles by hundreds of millions of euros, sending its shares lower in pre-market trade on Monday, Reuters reads.

Group earnings before interest and tax this year are now expected to be at last year’s level, the carmaker said, against a previous estimate for a slight increase. Earnings will be affected in the second quarter, it said.

The revision is related to an expected increase in expenses linked to “various ongoing governmental proceedings and measures” with regard to Mercedes-Benz diesel vehicles, the company said.

The Stuttgart-based owner of Mercedes-Benz is being investigated for its diesel emissions in Europe and the United States. It issued a similar profit warning on diesel issues in October.

In April, EU antitrust regulators charged BMW, Volkswagen and Daimler with colluding to block the rollout of clean emissions technology.