Mercedes-Benz sees sales, profit fall in second quarter amid market challenges
Date
7/28/2024 8:11:22 AM
(MENAFN) Mercedes-Benz reported a decline in its second-quarter sales and profits compared to the same period last year. The German carmaker, based in Stuttgart, announced on Friday that its sales fell by nearly 4 percent, reaching 36.7 billion euros in the second quarter of this year. Additionally, earnings before interest and tax (EBIT) dropped by 20 percent, amounting to just over 4 billion euros. The company's net income also decreased by almost 16 percent, down to 3.1 billion euros.
The adjusted margin before interest and taxes, which represents the percentage of daily profits from sales, was 10.2 percent for the April-June period, a decrease of more than three percentage points from the strong rate recorded a year earlier. This decline in margins and overall sales included a reduction in sales of highly profitable luxury models, as well as a downturn in the crucial Chinese market.
Despite analysts' expectations for a slightly higher margin, the company's chief executive, Ola Källenius, lowered revenue expectations for the automotive division. However, Källenius noted that the business performance in the delivery truck division was better than previously anticipated.
Mercedes-Benz confirmed its expectations for total sales and EBIT for the year, with Källenius expressing optimism about the second half of the year. "We assume that sales and model mix will improve in the second half of this year – driven by further market launches, especially in the premium segment," he said. This outlook suggests that the company expects a rebound in sales and a better mix of models to drive improved performance in the coming months.
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