Daimler Sees Lower Truck Profit, Higher Air-Bag Recall Cost
- Truck sales falling in North America and Mideast, company says
- Takata-related expense to be ‘mid-hundreds of million euros’
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Daimler AG said its truck unit’s profit will be “significantly lower” this year and increased its estimate for costs related to recalls of defective Takata Corp. air bags.
Daimler Trucks’ earnings before interest and taxes will drop from last year’s record 2.7 billion euros ($3.03 billion) as demand shrinks more rapidly than expected in North America and the Middle East, the Stuttgart, Germany-based company said Thursday in a statement. Even with that projection and the higher car air-bag recall spending, Daimler is sticking to a forecast for group Ebit from ongoing business to rise slightly in 2016.