Frankfurt, June 24 -- Automaker Daimler said Sunday that profits for the second quarter will be hit by troubles with diesel vehicles from its Mercedes-Benz brand and downgraded its earnings forecast for the full year.

The company said in a news release that it would be hit by "a high three-digit million" euro increase in charges related to ongoing government proceedings and measures related to diesel vehicles.

It said full-year operating earnings would be "in the magnitude" of last year's 11.1 billion euros ($12.6 billion) instead of seeing slight growth.

The company's Mercedes-Benz Vans division would see a loss amounting to a negative return on sales of 2% to 4% for the years. The division lost 98 million euros in the first quarter....