FRANKFURT (Reuters) – Mercedes-Benz cut its annual margin forecast for the second time in less than two months on Thursday as sales in China fell.
As the premium car segment suffers from persistently sluggish demand in China, the world’s largest car market, the German manufacturer, which had already lowered its outlook in July, has once again revised downwards its profit forecasts for 2024 for both its automotive division and the group as a whole.
The first, Mercedes-Benz Cars, is now expected to generate an operating margin of between 7.5% and 8.5% this year, compared to a previous range of 10% to 11%, which implies a margin of only around 6% in the second half.
At the group level, operating profit (EBIT) is now expected to be significantly lower than last year. The same should apply to cash generation from industrial activities.
The two other major German manufacturers, Volkswagen and BMW, have also recently reported difficulties, particularly linked to China.
(Written by Emma-Victoria Farr, Bertrand Boucey)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
