FRANKFURT, Germany (AP) — Automaker Daimler says profits for the second quarter will be hit by troubles with diesel vehicles from its Mercedes-Benz brand and has downgraded its earnings forecast for the full year.
The company said Sunday in a news release that it would be hit by “a high three-digit million” charge related to ongoing government proceedings and measures related to diesel vehicles.
It said full-year operating earnings would be “in the magnitude” of last year’s 11.1 billion euros ($12.6 billion) instead of seeing slight growth.
Daimler was ordered Friday by Germany’s vehicle authority to recall 60,000 SUVs with technology the authority said impermissibly reduced emission controls.
The company said in its first-quarter earnings release it faces a probe of emissions matters by the U.S. Justice Department; German prosecutors are also investigating.