The profit of the Mercedes-Benz Cars division fell by 28.5 percent, Manager Magazin (mm) wrote on July 26.
Supply problems and, above all, the difficult Chinese market have hit the Mercedes-Benz Group hard. Profits in the car division fell by more than a quarter.
Adjusted margin before interest and taxes (the ratio of profit from daily operations to sales) was 10.2%, recovering slightly from an already weak start to the year. However, it is still more than 3 percentage points below the previous year’s high.
For the full year, the company now expects growth in the range of 10% to 11%, up from 10% to 12% previously. As smaller van and transport companies are also expected to perform better than previously thought, the DAX-listed group largely confirmed its forecast despite a slowdown in the first six months.
The group’s total turnover is expected to reach last year’s level of 153 billion euros (14.5 trillion rubles). The group’s CEO, Ola Källenius, speaks of a “challenging environment.” “We expect sales and product lines to improve in the second half of the year, supported by increased market entry, particularly in the high-end segment.”.
It should be noted that in China, prices for new cars are currently under severe pressure. There is a price war going on, especially for electric vehicles. Porsche has also felt the consequences. The sports car manufacturer is preparing for a constantly worsening situation and even for a production stoppage in China.
Source: Rossa Primavera
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