Daimler net profit falls 21 per cent in third quarter

FRANKFURT – German automaker Daimler AG said Thursday that its net profit fell 21 per cent in the third quarter as the company faced backlogs registering vehicles under new emissions rules and regulatory pressure over diesel emissions.

Daimler’s net profit fell to 1.76 billion euros ($2.01 billion) from 2.24 billion euros in the year-ago quarter. Revenue fell 1 per cent to 40.2 billion euros.

The company, which makes Mercedes-Benz luxury cars, had already warned that profits would decrease due to regulatory actions involving diesel cars and other issues. It now says profits for the year will be “significantly lower” than last year.

The company faced backlogs getting cars approved under new emissions rules that went into effect Sept. 1, which limited the availability of vehicles to deliver to customers.

Germany automakers are also under pressure from the government to reduce diesel emissions. The company cited “government proceedings and measures for diesel vehicles.”

Earnings at the Mercedes division fell 35 per cent to 1.37 billion euros, while the company’s truck division saw a 38 per cent increase to 850 million euros.