FILE PHOTO: A Mercedes-Benz “Vision URBANETIC” concept car is seen in front of the Daimler AG logo during the company’s annual news conference in Stuttgart, Germany, February 6, 2019. REUTERS/Michael Dalder/File Photo
FRANKFURT (Reuters) – Luxury carmaker Daimler (DAIGn.DE) said it would intensify cost cuts after legal risks for diesel-related issues and the cost of replacing Takata airbags triggered a 1.56 billion euros ($1.74 billion) loss before interest and taxes in the second quarter.
The German company said 4.2 billion euros in one-off expenses contributed to the operating loss in the quarter, compared with a 2.6 billion profit in the same period last year.
“In general, we are intensifying the Group-wide performance programs and reviewing our product portfolio in order to safeguard future success,” Chief Executive Ola Kaellenius said in a statement on Wednesday.
Earlier this month, the Stuttgart-based carmaker pre-released earnings in what amounted to its fourth profit warning in 13 months, saying its 2019 group EBIT would be “significantly” lower than last year.
Reporting by Edward Taylor, editing by Riham Alkousaa