Daimler AG lost more than $1.7 billion during the first quarter as its revenue dropped 22% from weak sales of luxury cars, trucks and vans.
The Daimler Group’s total revenue is likely to decrease significantly in full-year 2009, Bodo Uebber, Daimler’s chief financial officer, acknowledged during a conference call with analysts today. He said that it would be difficult for the German automaker to get back to profitability, though he continued to hold out hope in the second half of the year.
“Earnings in the second quarter are expected to be significantly negative once again,” he said. In addition, Daimler will also be asked to absorb a $700 million write down, according to the terms of new deal that terminates its ties with Chrysler LLC.
Daimler also expects its unit sales to drop dramatically this year.
“The Daimler Group’s total revenue is likely to decease significantly in full-year 2009,” Uebber said. As a result of the dire outlook, Daimler is mounting a quest for $5.2 billion in savings that will reach across the company. The cuts could include delaying or trimming some research and development and capital spending projects that were once untouchable. “We will do whatever it takes,” Uebber said.