Stuttgart, Germany - German carmaker Daimler AG cut its 2008 earnings forecast Thursday in the face of a slowing world economy, a surging euro and increasing raw material costs.
The announcement by the manufacturer of luxury Mercedes Benz cars that it had revised down its earnings before interest and tax (EBIT) to more than 7 billion euros (11 billion dollars) sent the group's shares sharply down.
The Stuttgart-based carmaker had previously said that it expected EBIT from the group's ongoing operations to top the 7.7 billion euros it posted in 2007.
Daimler's shares dropped by about 8.0 per cent to 39.30 euros following the announcement.