Daimler's Mercedes sales drive higher but charges put brakes on profit

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Daimler reported a 64per cent fall in 2019 net profit, its largest drop in a decade, despite record high Mercedes-Benz sales as CEO Ola ...

Singapore News, Singapore Headlines

STUTTGART, Germany: Daimler reported a 64per cent fall in 2019 net profit, its largest drop in a decade, despite record high Mercedes-Benz sales as CEO Ola Kaellenius signed off on more than 5 billion euros (US$5.46 billion) in legal and restructuring charges.

Mercedes scrapped its X-Class pick-up truck and restructured its mobility services unit last year, meaning further charges of 828 million and 405 million euros, respectively.Kaellenius said restructuring at the vans division would deliver results this year but cautioned Daimler's passenger car operations face a tough could of years."We are going to restore the financial health of this company and take the measures we have to take to get back on track," Kaellenius said.

He is tasked with safeguarding Daimler's success as the industry undergoes sweeping changes including tougher environmental rules and a costly shift to electric power. It will look for savings of more than 1.4 billion euros by the end of 2022 through cuts in administrative and personnel costs.

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