Daimler raises outlook, says chip shortage may impact Q2 sales

imageStock Markets11 minutes ago (Apr 23, 2021 01:40AM ET)

(C) Reuters. Auto Shanghai show in Shanghai


LONDON (Reuters) – Mercedes-Benz car maker Daimler AG (DE:DAIGn) on Friday raised its profit outlook for 2021, but warned that the global semiconductor chip shortage may continue to impact its sales in the second quarter.

Daimler (OTC:DDAIF) said that although “visibility is limited at present”, it assumes “some recovery” in the availability of chips in the second half of this year.

But the German carmaker said it still expects its operating profit this year to be significantly above 2020 as the global economy recovers from the ravages of the coronavirus pandemic.

The chip shortage has curtailed production for a number of major automakers, including General Motors Co (NYSE:GM), Stellantis, Ford Motor (NYSE:F) Co and Daimler’s German rival Volkswagen AG (OTC:VWAGY).

Earlier this week, Daimler cut working hours for up to 18,500 employees and said it would temporarily halt production at two plants in Germany due to the chip shortage.

Cars have become increasingly dependent on chips – for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

Daimler said it now expected an adjusted margin from its Mercedes cars and van business of between 10% and 12%, up from its previous outlook of between 8% and 10%.

Last week, Daimler said that soaring Chinese demand for luxury Mercedes-Benz cars and higher prices drove a better-than-expected profit in the first quarter.

Daimler raises outlook, says chip shortage may impact Q2 sales

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.