Daimler sees Mercedes-Benz EBIT rising this year as sales rebound

FRANKFURT (Reuters) – Daimler (DAIGn.DE) expects a rise in operating profit at its Mercedes-Benz cars and vans division in 2020 as sales rebound, it said on Thursday, after the German automaker reported a second-quarter loss of 1.68 billion euros ($1.9 billion).

On a group level Daimler expects a fall in EBIT this year.

Daimler had outlined the figures last week when it said it would stop building Mercedes-Benz sedans in the United States and Mexico as it seeks deeper cost cuts.

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Chief Financial Officer Harald Wilhelm said Daimler needed to change its cost structure in the long term.

Daimler said on Thursday that cost-cutting measures had helped to counter the impact of the pandemic on its businesses including Mercedes-Benz cars and vans and Daimler trucks and buses.

Its business has been hit by showroom closures and slumping demand during lockdowns introduced to halt the spread of the coronavirus.

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