Daimler announced this week that they have lowered this year’s profit target for Mercedes-Benz.
Daimler announced this week that they have lowered this year’s profit target for Mercedes-Benz due to a “deteriorating auto market” in Europe and China. Daimler CEO Dieter Zetsche mentioned that the company’s earnings before interest and tax (EBIT) will be lower in comparison to 2011.
Previously, the German company said that the division will have just about the same earning as last year (5.2 billion Euros). Zetsche declared that the EBIT for the second half of this year is going to be lower than the 2.57 billion Euros achieved in the first half, meaning a total decrease of at least 60 million Euros.
While Mercedes-Benz saw an 11 percent increase in China, BMW’s sales went up by 30 percent while Audi rose by 38 percent. Spokesman Mathias Schmidt at BMW said that the German automaker will maintain its pretax profit and car deliveries forecast, estimating an automotive EBIT margin between 8 and 10 percent.