Daimler cuts profit forecast for trucks after poor sales

Daimler cut its profit forecast for its trucks division due to slumping sales in the US and Brazil.

Daimler Trucks said it expected earnings before interest and taxes (EBIT) from continued operations and unit sales to fall significantly this year. It had previously expected EBIT from ongoing operations to remain steady at 2015 levels and unit sales to fall slightly.

"Daimler has finally decided to change its unrealistic guidance for trucks, which has not done any good to improve credibility over the last few months," Citi analyst Michael Tyndall said in a note yesterday.

Separately, Daimler said that it was setting aside about €500 million in provisions this year for a precautionary recall of vehicles in the United States and Canada which contain airbags made by Takata. – (Reuters)