Car industry Mercedes-Benz records significant declines

Mercedes has recently sold fewer cars, especially of the expensive top models. This is now reflected in the business figures. The Group is more optimistic about the second half of the year.

Turnover in the second quarter fell by just under four percent to 36.7 billion euros compared to the same period last year, according to the Stuttgart-based car manufacturer. Earnings before interest and taxes (EBIT) slumped by almost a fifth to just over four billion euros. The bottom line for the Group fell by just under 16 percent to 3.1 billion euros.

The adjusted margin before interest and taxes - i.e. the ratio of earnings in day-to-day business to sales - in the important automotive business was 10.2 percent from April to June - more than three percentage points below the strong figure for the previous year. In the second quarter, sales of the particularly lucrative top models and overall sales fell compared to the same quarter of the previous year, including in the important Chinese market.

Improvement expected in the second half of the year

Analysts had also expected a slightly higher margin on average. Mercedes boss Ola Källenius lowered the profit forecast for the car division at the upper end of the range. However, vans are doing better than previously thought.

On the other hand, the company confirms its Group forecasts for total sales this year and earnings before interest and taxes. "We assume that sales and the model mix will improve in the second half of the year - supported by further market launches, particularly in the top-end segment," Källenius is quoted as saying.

SDA