FRANKFURT -- Daimler will intensify cost cuts and plans to shrink its model lineup 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.
Daimler 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.
"We are intensifying the group-wide performance programs and reviewing out product portfolio in order to safeguard future success," CEO Ola Kallenius said in a statement on Wednesday.
For Daimler, the pressure to clean up combustion engines has come at a time when the industry has to invest heavily in electric and self-driving vehicles, and cope with slowing growth in China, weak markets in Europe and a rise in global trade tensions.
Passenger car sales slowed 3 percent during the quarter and the return on sales at Mercedes-Benz Cars swung to a negative 3 percent in the quarter, down from 8.4 percent in the year-earlier period.
Earlier this month, Daimler 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.
Annual revenue will be slightly higher than a year ago, while vehicle sales will be about the same as 2018 thanks to increased product momentum in the second half, Daimler said Wednesday. Sales of its trucks and buses are expected to rise, the company said.
