Mercedes-Benz Group he saw his net profit halved since third quarter 2024, due to a difficult economic context and fierce competition, especially from China. The German car manufacturer announced that its quarterly net profit fell to 1,71 billion euros, a dramatic -53,8% compared to 3,71 billion in the same period last year. Even the revenues suffered a setback, falling to 34,52 billion euros, down 6,7% from 37 billion the previous year. The results of Mercedes-Benz Group (-1,66% to 57,44 euros) dampened the euphoria generated by Tesla and Renault's accounts exceed expectations, which had dragged the car market higher yesterday. Investors are now anxiously awaiting the results of Volkswagen, scheduled for Wednesday 30 October.
Mercedes: Market pressure and China weigh on accounts
All divisions of the group felt the pressure. For the sector Mercedes-Benz Cars, the ebit adjusted fell to 1,2 billion euros, compared to 3,4 billion last year, while revenue fell by 5,6% to 25,6 billion euros. The company explained that “EBIT was also weaker than in the second quarter due to lower net prices and a less favorable sales mix, leading to a 4,7% sales margin”. That result is well below the company’s minimum target of 8% and far from the 12,4% it achieved a year ago, highlighting the difficulty in maintaining profits as sales of its most expensive models, such as the S-Class and Maybach, are falling as China’s economic slowdown, compounded by a long-running housing crisis.
To cope with these disappointing results, Mercedes plans to intensify cost control. “The third quarter results do not meet our ambitions,” declared the CFO Harald Wilhelm -. We have a cautious approach to market developments and will intensify all efforts to increase efficiency and improve costs across the business.”
Full-year sales expected to be lower than 2023
Looking to the future, Mercedes foresees annual sales in the car division slightly lower to those of the 2023, with fourth-quarter deliveries in line with the third. However, positive momentum is expected for global sales of premium vehicles, thanks to the arrival of the G-Class, Mercedes-AMG E-Class, Mercedes-AMG GT and SL.
At the group level, i revenues are expected to be slightly below 2023. The German automaker has already revised its forecast twice this year, most recently in September, estimating an adjusted return on sales of 2024% to 7,5% in the automotive segment for 8,5, up from a previous forecast of 11%. It now expects a ebit at the end of the year significantly lower than the 2023 levels, compared to the more modest decline initially forecast.
