Although Daimler expects sales and revenue to increase this year, its profit growth will likely drop.
That’s because the German automaker is spending on new cars and technologies, focusing mainly on developing electric and autonomous vehicles. The company announced it recently missed quarterly earnings forecasts and reported a lower margin on its Mercedes-Benz cars. Daimler expects 2018’s earnings before interest and tax (EBIT) will be similar to last year’s as a result of the investments.
The company’s EBIT for the fourth quarter through December was 3.47-billion euros, while the return on sales at Mercedes-Benz Cars division fell to 9.7 percent from last year’s 10.7 percent. Unit sales however did rise four percent.
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Mercedes is getting ready to launch its new EQ sub-brand of electrified vehicles, and Daimler is refocusing on how Smart will be marketed in years to come. At the 2017 Frankfurt Motor Show, Smart rolled out the Vision EQ ForTwo Concept, a compact electric vehicle that’s built for car sharing. It is the first project to adhere to Daimler’s “CASE” corporate strategy, which stands for Connected, Autonomous, Shared, and Electric.
[Source: Reuters]
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