In addition, lower plan assets or a decrease in the rate of expected return on plan assets can result in higher pension and other post-retirement benefit expense in subsequent years. Both events may adversely impact automotive sales.
We sometimes provide guarantees for third party liabilities, principally in connection with liabilities of our non-consolidated affiliated companies, and performance guarantees related to the contractual performance of joint ventures, non-incorporated companies, partnerships and project groups.
Exchange rate fluctuations may also affect the U. Additionally, the intense competition in the automotive industry is having a significant adverse effect on the financial position and business continuity of key suppliers.
For example, a discord in international trade relations and the implementation of new tariff or non-tariff trade barriers could negatively affect our global sales and procurement activities as well as expansion plans in affected areas. Our agent for U. Potential delays in bringing new vehicles to market, the inability to achieve defined efficiency targets without suffering from quality losses and a lack of market acceptance of our new models would adversely affect our financial condition, results of operations and cash flows.
Operating and Financial Review and Prospects. Preliminary results for the second quarter - Daimler adjusts its earnings guidance Stuttgart, Germany - Due to items listed below, Daimler AG has achieved a Group EBIT for the second quarter that is significantly below market expectations.
Our fifth segment, Other Activities, comprises all other businesses and investments in businesses not allocated to one of our primary business segments.