Mercedes-Benz scales back sales targets after weak Q3 results

(Sharecast News) - Mercedes-Benz became the latest in a string of automakers to issue a cautious outlook on Friday as profits in its car division slumped due to macro challenges and heightened competition, particular in China. The German manufacturer admitted that third-quarter results "did not meet our ambitions", as adjusted EBIT tanked 48% to €2.54bn.

Revenues were 7% lower year-on-year at €34.53bn as van sales dropped 13% to 91,100 and car sales fell 4% to 503,573.

In the car division, the company said that improved product availability was outweighed by "weaker macroeconomic conditions and fierce competition, mainly in Asia", with adjusted EBIT dropping to just €1.2bn from €3.4bn a year earlier.

Looking ahead, Mercedes-Benz said it expects full-year sales to now be "slightly below 2023" with fourth-quarter turnover predicted to be similar to the third quarter. Previous guidance pointed to flat sales in 2024.

"The Q3 results do not meet our ambitions. Nonetheless Mercedes-Benz continues to generate solid cash flows even in challenging times," said chief financial officer Harald Wilhelm.

"We are taking a prudent view about market evolution going forward and we will step up all efforts on further efficiency increases and cost improvements across the business," Wilhelm said.

The stock was down 1.1% at €57.70 by 1155 in Frankfurt.