Mercedes has recently sold fewer cars, especially the expensive top models. This is now reflected in the business figures. The company is more optimistic about the second half of the year.
Mercedes-Benz has felt the effects of the weaker environment for the automotive industry. Sales fell by almost four percent to 36.7 billion euros in the second quarter compared to the same period last year, according to the Stuttgart-based carmaker. Earnings before interest and taxes (EBIT) fell by almost a fifth to just over four billion euros. The group’s bottom line fell by almost 16 percent to 3.1 billion euros.
The adjusted margin before interest and taxes – i.e. the share of profit from day-to-day business in sales – in the important car business was 10.2 percent from April to June – and thus more than three percentage points below the strong figure for the previous year. In the second quarter, sales of the particularly lucrative top models as well as overall sales fell compared to the same quarter last 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 return forecast for the car division to the upper end of the range. However, things are going better for delivery vans than previously thought.
However, the company confirms the group forecasts for total sales this year and earnings before interest and taxes. “We expect sales and the model mix to improve in the second half of the year – supported by further market launches, especially in the top-end segment,” Källenius is quoted as saying.
Source: Stern
