The Stuttgart-based company’s sales and pre-tax earnings fell noticeably in the first quarter, as did its consolidated profit. However, the car manufacturer confirmed the annual forecasts.
The car manufacturer Mercedes-Benz started the year weaker than expected due to problems in the supply chains and model changes. Sales in the first quarter fell by 4.4 percent to 35.9 billion euros, as the Stuttgart-based company announced. Earnings before interest and taxes even fell by almost 30 percent to 3.86 billion euros. In the most important passenger car division, the operating profit margin before interest and taxes, adjusted for special effects, fell surprisingly significantly by 5.8 percentage points to 9.0 percent.
The management around boss Ola Källenius had already warned of a weak start. The decline in sales and model changes in the lucrative top segment had a negative impact. The bottom line is that Mercedes made around a quarter less consolidated profit at 3.03 billion euros. The car manufacturer confirmed the annual forecasts.
Source: Stern
