BERLIN: 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 airbag.
Daimler Trucks’ earnings before interest and taxes (EBIT) will drop from last year’s record 2.7 billion euros (US$3.03 billion) as demand shrinks more rapidly than expected in North America and the Middle East, the Stuttgart-based company said in a statement on Thursday.
Even with that projection and the airbag recall spending, Daimler is sticking to a forecast for group EBIT from ongoing business to rise slightly this year.
