Daimler profit fell 1Q due to lower sales

US, WASHINGTON (ORDO NEWS) — German car and truck manufacturer Daimler said Thursday that its first-quarter operating profit had fallen by almost 70% due to the coronavirus pandemic and warned that the cash flow it used to pay dividends was year will decline.

Adjusted profit before interest and taxes (EBIT) decreased in January-March by 68.9% to 719 million euros ($ 777 million). Daimler also warned of declining car sales and revenue this year.

In the Mercedes-Benz division, adjusted EBIT fell by more than 56% to EUR 603 million.

Daimler shares fell 52% over the past year, with the result that the company’s capitalization fell to 29.8 billion euros.

In March, car sales in Europe more than halved, with Italy dropping 85.4%, according to the European Automobile Manufacturers Association.

On Wednesday, Mercedes-Benz announced the resumption of automotive engine production at its factory in Stuttgart.

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