STUTTGART -- Daimler said earnings before interest and taxes (EBIT) at its Mercedes-Benz cars division this year will fall short of last year's level as market conditions in Europe and China deteriorate.
Second-half EBIT at Mercedes-Benz cars will drop below the first-half result, Daimler CEO Dieter Zetsche said today in Stuttgart, where the carmaker is based.
The division's first-half EBIT declined 10 percent to 2.57 billion euros.
"The overall environment in Europe is deteriorating, with more negative developments than expected," Zetsche said. "There is also significantly sharpening competition in China."
Zetsche said Mercedes has already been taking efficiency measures that are being bundled into a savings drive to be called "Fit for Leadership." He didn't give details.