German car maker Daimler reported that profits and revenue dropped sharply in the third quarter due to the “challenging environment” facing the automotive industry.
The Mercedes-Benz owner reported a net profit of €1.8bn (€1.59bn) in the third quarter of the year, down from €2.2bn in the same period in 2017.
Its earnings before interest and tax fell 27 per cent year-on-year to €2.49bn from last year's €3.41bn.
Daimler chairman and head of Mercedes-Benz Dieter Zetsche said: “The automotive industry and thus also Daimler are still in a very challenging environment.
“The continued high demand from our customers makes us confident for the fourth quarter.”
It also blamed ongoing proceedings with the German government, which force Daimler to recall 774,000 Mercedes-Benz vehicles found to be fitted with illegal emissions software.
The government ordered costly updates to vehicles to lower the emissions of older cars.
But the company remained positive in its outlook.
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Daimler's chief financial officer Bodo Uebber said: “Despite the volatile environment, it is important and right for Daimler to invest in the future.
“In doing so, we profit from our strong balance sheet and from our global and diverse refinancing possibilities.”
Last week the company warned earnings would be significantly lower than expected.
It said costs from “government proceedings and measures in various regions” affecting its diesel vehicles were to blame.