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UPDATED: 10/19/18 11:01 PM ET – adds details

FRANKFURT – Daimler has his second profit warning In four months on Friday, the costs of "state procedures and measures" were mainly responsible for his diesel vehicles.

Daimler expects earnings before interest and taxes for the full year to be significantly below the previous year's level. The release of third-quarter earnings figures, well below market expectations, also accelerated.

In the third quarter, Daimler had achieved earnings before interest of 2.49 billion euros (2.85 billion US dollars). This corresponds to a decline of 35 percent at Mercedes-Benz Cars to 1.37 billion euros compared to 3.41 billion euros in the same period of the previous year.

Daimler shares fell in the news and lost 1.74 percent in Europe to 51.50 euros – a new five-year low.

The profit warning comes due to the tensions between the German government and the automakers, as urban bans on polluting older diesel cars can be averted, with the manufacturers refusing to retrofit exhaust systems at their own expense.

Daimler agreed in June the callback of some 774,000 diesel vehicles in Europe to solve government allegations, it used illegal shutdown devices in its engines.

Due to delivery delays, the company also reported lower sales volumes from the van division. and the need to take into account the costs relating to a judgment of the European Court of Justice on vehicles with an old coolant.

Bloomberg contributed to this report

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