FRANKFURT (Reuters) – Daimler (DAIGn.DE) on Thursday announced cost cuts as it reduced its revenue outlook for Mercedes-Benz trucks unit and reported an 8% drop in third-quarter operating profit.

Earnings before interest and taxes fell to 2.69 billion euros, down from 2.49 billion euros in the year-earlier period as the trucks division posted a drop in sales.

“In order to master the transformation in the next few years, we need to increase our efforts considerably: we have to significantly reduce our costs and consistently strengthen our cash flow,” Chief Executive Ola Kaellenius said, without elaborating.

Daimler reiterated that it expected group earnings before interest and taxes to be significantly lower than last year, and warned it now sees revenue at the trucks division to be at the year-earlier level instead of expecting slight revenue growth.

Passenger car sales slowed 1% during the quarter and the return on sales at Mercedes-Benz Cars fell to 6%, down from 6.3% in the year-earlier period, Daimler said.