AIRLINK 74.64 Decreased By ▼ -0.21 (-0.28%)
BOP 5.01 Increased By ▲ 0.03 (0.6%)
CNERGY 4.51 Increased By ▲ 0.02 (0.45%)
DFML 42.44 Increased By ▲ 2.44 (6.1%)
DGKC 87.02 Increased By ▲ 0.67 (0.78%)
FCCL 21.58 Increased By ▲ 0.22 (1.03%)
FFBL 33.54 Decreased By ▼ -0.31 (-0.92%)
FFL 9.66 Decreased By ▼ -0.06 (-0.62%)
GGL 10.43 Decreased By ▼ -0.02 (-0.19%)
HBL 114.29 Increased By ▲ 1.55 (1.37%)
HUBC 139.94 Increased By ▲ 2.50 (1.82%)
HUMNL 12.25 Increased By ▲ 0.83 (7.27%)
KEL 5.21 Decreased By ▼ -0.07 (-1.33%)
KOSM 4.50 Decreased By ▼ -0.13 (-2.81%)
MLCF 38.09 Increased By ▲ 0.29 (0.77%)
OGDC 139.16 Decreased By ▼ -0.34 (-0.24%)
PAEL 25.87 Increased By ▲ 0.26 (1.02%)
PIAA 22.20 Increased By ▲ 1.52 (7.35%)
PIBTL 6.80 No Change ▼ 0.00 (0%)
PPL 123.58 Increased By ▲ 1.38 (1.13%)
PRL 26.81 Increased By ▲ 0.23 (0.87%)
PTC 14.01 Decreased By ▼ -0.04 (-0.28%)
SEARL 58.53 Decreased By ▼ -0.45 (-0.76%)
SNGP 68.01 Decreased By ▼ -0.94 (-1.36%)
SSGC 10.47 Increased By ▲ 0.17 (1.65%)
TELE 8.39 Increased By ▲ 0.01 (0.12%)
TPLP 11.05 Decreased By ▼ -0.01 (-0.09%)
TRG 63.21 Decreased By ▼ -0.98 (-1.53%)
UNITY 26.59 Increased By ▲ 0.04 (0.15%)
WTL 1.42 Decreased By ▼ -0.03 (-2.07%)
BR100 7,941 Increased By 103.5 (1.32%)
BR30 25,648 Increased By 196 (0.77%)
KSE100 75,983 Increased By 868.6 (1.16%)
KSE30 24,445 Increased By 330.8 (1.37%)

daimlerFRANKFURT: German automaker Daimler, which cut its full-year forecasts after a difficult third quarter, is planning to save 2.0 billion euros ($2.6 billion) in costs by 2014, its finance chief said Thursday.

 

In order to safeguard the profitability of its Mercedes-Benz Cars division -- which groups together its Mercedes-Benz and Smart brands -- Daimler has drawn up a new cost-cutting programme with the aim of overtaking rivals BMW and Audi as the leading top-of-the-range carmaker by 2020.

 

"We're aiming to achieve a 2.0-billion-euro improvement in costs by 2014," finance chief Bodo Uebber told a telephone news conference.

 

At the same time, Daimler would extend its model range, with 10 new models planned by 2015, Uebber continued.

 

Late Wednesday, Daimler revised downwards its 2012 operating profit target after posting an annualised 11-percent drop in third quarter net profit.

 

The Stuttgart-based luxury automaker said in a statement that net profit for the three months from July through September had fallen to 1.21 billion euros and that it now expected to earn an underlying or operating profit of around eight billion euros this year.

 

It had previously forecast a level of around 8.8 billion euros.

 

Analysts surveyed by Dow Jones Newswires had expected a drop of 12 percent.

 

"Because of the challenges linked to economic developments, Daimler will not reach last year's EBIT (earnings before interest and taxes) but results will nevertheless be good," Daimler chief Dieter Zetsche said in the statement.

 

The group revised its forecast downward because of the worsening market situation and increased competition, it added.

 

In the auto sector, Daimler aims at earnings before interest and taxes (EBIT) of 4.4 billion euros.

 

"Under market conditions which have definitely become more difficult, Daimler achieved a good result in the third quarter," Zetsche said.

 

In the third quarter, group sales rose eight percent to 28.6 billion euros, while EBIT shrank two percent to 1.9 billion.

 

Copyright AFP (Agence France-Presse), 2012

Comments

Comments are closed.