Tuesday, February 7, 2023
Forex Broker News
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    VastWealth Review

    Stockscale Review

    Fibinex.io Review

    Homefx-Plus Review

    StockHome.io Review

    LegacyFX Review

    Crypto Dock Review

    City Index Review

    Forex.com Review

  • Broker Types
  • Forex & Fintech Jobs
  • News
No Result
View All Result
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    VastWealth Review

    Stockscale Review

    Fibinex.io Review

    Homefx-Plus Review

    StockHome.io Review

    LegacyFX Review

    Crypto Dock Review

    City Index Review

    Forex.com Review

  • Broker Types
  • Forex & Fintech Jobs
  • News
No Result
View All Result
Forex Broker News
No Result
View All Result
Home News Forex Broker News gulfbrokers

DAX falls after Daimler bad news

According to Reuters, luxury carmaker Daimler cut its profit forecast for the fourth time in 13 months on Friday, as it set aside more money to cover a regulatory crackdown on diesel emissions and vehicle recalls related to Takata airbags.

The German automaker is among a raft of blue-chip firms to issue a profit warning this week, adding to concerns about the severity of an economic slowdown, particularly in China where confidence has been hit by an ongoing trade war.

The maker of Mercedes-Benz cars said it would post a second-quarter operating loss and that 2019 results would be “significantly” lower than last year, compared with its previous forecast for a broadly unchanged performance.

It also blamed lower-than-predicted growth in automotive markets, as well as slower product ramp-ups that have affected availability this year.

Analysts said deteriorating cashflow would make it hard for Daimler to keep paying a high dividend. Philippe Houchois at Jefferies said Daimler’s dividend would need to be cut to around 50 cents per share, down from 3.25 euros in 2018.

The warning is the second since Ola Kaellenius took over from long-standing Daimler CEO Dieter Zetsche in May.

“In finance, some call it ‘to throw in the kitchen sink’ … well Daimler just threw in the dining room table, the fridge and the polished silver,” Evercore ISI analysts wrote in a note.

ADVERTISEMENT

“Whether this is the final warning for the year remains to be seen.”

Daimler shares fell as much as 4.5% to a six-month low of 44.54 euros. At 1110 GMT, the stock, which has dropped about 22% in the past three months, was down 0.8%.

German carmakers, among global leaders in diesel technology, have been caught in the crosshairs of courts and regulators after Volkswagen (VOWG_p.DE) admitted in 2015 to using engine control devices to cheat U.S. diesel emission tests.

Daimler’s diesel pollution levels are being investigated by prosecutors in Stuttgart, Germany, where it is headquartered, as well as by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).

The pressure to clean up combustion engines has come at a time when the industry has to invest heavily in electric and self-driving vehicles, cope with slowing growth in China, weak markets in Europe and a rise in global trade tensions.

Daimler said it expected to take an extra 1.6 billion euros hit related to “ongoing governmental and court proceedings and measures relating to Mercedes-Benz Diesel vehicles in various regions.” It did not give further details.

It also said provisions related to an extended recall connected to Takata airbags would increase by around 1 billion euros, and a review of its Mercedes-Benz vans product portfolio would hit second-quarter earnings by 500 million euros.

The bankruptcy of Japanese airbag maker Takata has left some carmakers having to shoulder the cost of recalls. Ford (F.N) took a hit of $775 million in 2018 for Takata-related recalls in North America.

A result of the extra costs, Daimler forecast a second-quarter loss before interest and taxes of 1.6 billion euros ($1.80 billion), compared with a 2.6 billion profit in the same period last year.

Daimler also said its free cash flow for the second quarter would be below the same period last year, and that for the full- year it was no longer be expected to be above that of 2018.

Daimler’s warning came after auto suppliers Johnson Electric Holdings (0179.HK) and Sensirion (SENSI.S) slashed their earnings forecasts on Thursday, blaming a slowdown in car sales and pessimism about the prospects of a Chinese car sector recovery.

In May, German competitor BMW (BMWG.DE) warned on profits, citing higher than expected investments, while Volkswagen said the return on sales at its passenger cars division would come in at the lower end of its target.

Source: Reuters

DAX is declining because of Daimler’s bad news. I have noted some support areas, where market could obviously react somehow.

This article serves only for educational purpose. This is NOT investing advice. You are responsible for your capital. When you trade, we recommend you to keep tight your money and risk management.

The post DAX falls after Daimler bad news appeared first on Gulfbrokers.

Share197Tweet123ShareSend

Related Posts

gulfbrokers

Retail in eurozone slows despite trade war

November 1, 2022
gulfbrokers

EU invests in green energy

October 27, 2022
gulfbrokers

Cutting of output didn’t help

October 25, 2022
gulfbrokers

New peak is here

October 20, 2022
gulfbrokers

Alibaba is first step to selling stocks

October 19, 2022
gulfbrokers

No more Huawei in America

October 14, 2022

Select one of the Best Forex Brokers for your Trading  |  Read the Reviews

VastWealth Review

Stockscale Review

Fibinex.io Review

Homefx-Plus Review

StockHome.io Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. forexbroker.news is an affiliated partner with various Forex brokers and may be compensated for referred Forex traders.

Risk Disclosure: Forexbroker.news assumes no liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and forex signals. Operations in the international foreign exchange market contain high levels of risk. Forex trading may not be suitable for all investors. speculating only the money you can afford to lose. Forexbroker.news remind you that the data contained in this website is not necessarily real-time and may not be accurate. All stock prices, indexes, futures are indicative and not appropriate for trading. Thus, Forexbroker.news assumes no responsibility for any trading losses you might incur as a result of using this data.You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Disclaimer: It is our organization's primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While ForexBroker.News has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by ForexBroker.News, nor shall it bias our reviews, analysis, and opinions.

  • Privacy Policy
  • Contact US
  • Terms of use,

Copyright © 2020 forexbroker.news

No Result
View All Result
  • Home
  • Forex Broker Reviews
  • Broker Types
  • Forex & Fintech Jobs
  • News

© 2020 https://forexbroker.news - Forex Broker news & magazine