German carmaker Daimler, owner of Mercedes-Benz, said on Friday that its bottom-line profit slumped in the first three months of this year due to falling sales of two of its main model ranges.
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The earnings were overshadowed by the announcement Thursday that Daimler is investigating what it says are “possible indications of irregularities” in its emissions certification process, at the request of the US government.
Daimler also said that net profit fell 32% in the first quarter after costs related to the launch of its new E-Class weighed on the bottom line.
Shares in Daimler were down 7.4 percent in pre-market trade at Lang & Schwarz ahead of the market open at 0700 GMT, while the German blue-chip index (.GDAXI) was indicated 0.4 percent lower.
Daimler had guided for weaker results in the first quarter, and has said it expects business to improve in the second half. Net profit fell to 1.4 billion euro (£1.1 billion) from 2.05 billion euro (£1.6 billion) in the same period past year. “Our growth in unit sales clearly shows that we are following the right strategy and have the right products in the market”, said chief executive Dieter Zetsche.
This sophisticated software deliberately skews emissions readings when vehicles are undergoing tests. The company is conducting an internal investigation of its exhaust emissions certification process.
It comes just after Volkswagen agreed a deal with the USA over its emissions scandal, in which it will offer compensation and buy back some cars.
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In April owners of BlueTEC Mercedes diesel engined cars filed the suit claiming that the cars eject nitric oxide at levels 65 times the legal limit at temperatures under 10 degrees Celsius.
