Mercedes-Benz announced on Thursday a significant drop in third-quarter profits. This reduction is largely attributable to the drop in passenger car deliveries, which also led to lower sales. Despite these difficulties, the German premium vehicle manufacturer managed to maintain its stability thanks to pricing strategies and sales of high-end vans.
Mercedes-Benz has reported a fall in third-quarter net income, largely as a result of lower car deliveries.
The German premium carmaker’s sales fell by 1.4% to 37.2 billion euros due to the drop in passenger car sales, recording a decline of around 5% in the quarter compared with the previous year. Operating income (Ebit) fell by 6.8% to 4.8 billion euros.
This underperformance was due in part to a shortage of components, which hampered vehicle production and delivery. Mercedes-Benz luxury models were particularly hard hit, with deliveries down 11% in the third quarter.
The company’s net income fell by 7% year-on-year to 3.7 billion euros. Although this fall is slightly less than that forecast by Factset analysts, who were expecting earnings of 3.4 billion euros, it reflects the challenges facing Mercedes-Benz in the market.
Resilience despite difficulties
The automotive division recorded an adjusted return on sales of 12.4%, at the lower end of the Group’s annual forecast range, while Mercedes-Benz Vans posted a stronger quarter, with Ebit for this segment up 44% to 715 million euros. On the other hand, although sales of electric cars rose by 66% over the same period, this growth failed to offset the decline in sales of luxury cars.
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Featured photo : ©Mercedes-Benz
