By Max Bernhard
Daimler AG (DAI.XE) said Friday that its earnings slumped in the first quarter, but backed its guidance for the year ahead.
Net profit fell to 2.10 billion euros ($2.34 billion) in the period from EUR2.27 billion a year earlier.
Revenue edged lower to EUR39.70 billion, from EUR39.79 billion.
Earnings before interest and taxes dropped to EUR2.80 billion from EUR3.3 billion a year earlier. Earnings at Daimler's core Mercedes-Benz passenger-car unit were lower due to lower unit sales and changes in the sales structure, it said. Earnings at its trucks division were hit by higher raw-material prices and supply-chain bottlenecks.
Industrial free cash flow swung to negative EUR2.0 billion, from positive EUR1.8 billion a year ago.
The maker of Mercedes-Benz cars confirmed its 2019 guidance, expecting slight growth in unit sales, revenue and earnings.
"We had a comparatively weak start to the year and face numerous challenges along the entire value chain in all our automotive divisions. This had a negative impact on unit sales and earnings," said Chief Financial Officer Bodo Uebber.
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