Daimler first-quarter weighed by China slowdown

FRANKFURT (Reuters) - Daimler said its first-quarter operating profit fell 16 percent, weighed down by a 4 percent drop in sales of Mercedes-Benz cars, higher raw material costs and investments into its Trucks division.

Earnings before interest and tax (EBIT) dropped to 2.80 billion euros in the first quarter, falling behind analyst expectations of 2.89 billion euros.

Daimler said the return on sales at Mercedes-Benz cars fell to 6.1 percent, down from 9 percent a year earlier, due to a 3 percent fall in China sales and higher growth in lower-margin compact vehicles.

Daimler reiterated it expected a slight growth in unit sales, revenue and EBIT this year.

Reporting by Edward Taylor; Editing by Tassilo Hummel

Our Standards:The Thomson Reuters Trust Principles.

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