Daimler AG has reported a second quarter net loss of $1.51 billion, hurt by low sales and worldwide market weakness
, the company says. The company also attributes the loss to the repositioning of Mitsubishi Fuso Truck and Bus Corporation and Daimler Trucks North America, its subsidiaries. In comparison, the company experienced a profit of $1.95 billion during the second quarter of 2008.
Daimler Trucks' second quarter sales dropped by 56 percent to 54,100 units. Revenue in the division fell from about $10.4 billion to $5.9 billion. The division posted negative earnings before interest and tax of $711.6 million, compared to positive earnings of $851.7 million for the year-ago quarter. The company says the decline in earnings was mainly due to the decrease in vehicle shipments.
The company doesn't expect its truck sales to pick up in the second half of the year, as it believes its cost reduction efforts will only partially offset the negative effect. "From today's perspective, the division assumes that unit sales in the second half of the year will be at the same level as in the first half and that its market shares will at least remain stable," the company said.
, the company says. The company also attributes the loss to the repositioning of Mitsubishi Fuso Truck and Bus Corporation and Daimler Trucks North America, its subsidiaries. In comparison, the company experienced a profit of $1.95 billion during the second quarter of 2008.
Daimler Trucks' second quarter sales dropped by 56 percent to 54,100 units. Revenue in the division fell from about $10.4 billion to $5.9 billion. The division posted negative earnings before interest and tax of $711.6 million, compared to positive earnings of $851.7 million for the year-ago quarter. The company says the decline in earnings was mainly due to the decrease in vehicle shipments.
The company doesn't expect its truck sales to pick up in the second half of the year, as it believes its cost reduction efforts will only partially offset the negative effect. "From today's perspective, the division assumes that unit sales in the second half of the year will be at the same level as in the first half and that its market shares will at least remain stable," the company said.
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