Daimler declares 2012 full year earnings likely to fall below previous year’s figures

Weakening market conditions are likely to affect full year earnings of luxury auto maker Daimler AG. The company has stated that they are well prepared to see lower earnings well below last year’s figures during the current year following adverse economic changes in the market is what has had an unfavorable effect on earnings before profit and taxes during the current year.

Daimler’s full year earnings before interest and taxes could be about €8 billion as against €10.37 billion in the previous year and prior 2012 forecasts of about €9 billion. Third quarter net profits were down 11% to €1.21 billion from €1.36 billion while EBIT declined 2.5% to €1.92 billion. However, revenue saw an increase of 8.2% to €28.6 billion due to a 1% increase in vehicle sales.

Full year earnings targets of Mercedes Benz division has been slashed due to disturbances in both European and Chinese markets though the company has an efficiency plan to compete with rivals such as BMW, Volkswagen and Audi brand though profit margins may be slimmer and sales lagging behind. The company is hopeful of reclaiming their top spot in the premium segment by 2020 if not earlier and is banking on markets of China and North America to enable them to reach this goal. New registrations across Europe fell by 6.9% during the month of September while growing competition in China has also hampered sales.