[ad_1]
Mercedes Benz The weak environment in the automotive industry has been felt. The Stuttgart automaker reported a drop in second-quarter sales of almost 4 percent to 36.7 billion euros compared with the same period last year.
Earnings before interest and tax (EBIT) fell by almost a fifth to just over €4 billion. On top of that, consolidated results fell by almost 16% to €3.1 billion.
Mercedes luxury car sales fall
The adjusted EBIT margin (i.e. profit from day-to-day operations as a percentage of sales) in the key automotive business was 10.2% in the April-June period, more than three percentage points below last year’s strong value. In the second quarter, sales of the particularly profitable top models as well as overall sales fell compared with the same quarter last year, including in the key markets of China.
Kallenius lowers forecast
Analysts also expected slightly higher average margins. Mercedes boss Ola Källenius cut his forecast for returns for the car division to the top of the range. Delivery trucks, however, fared better than previously thought.
However, the company confirmed the group’s forecast for total sales and earnings before interest and tax for this year. Kallenius said: “We believe that sales and model mix will improve in the second half of the year, which will be supported by further market launches, especially in the high-end market.”
[ad_2]
Source link
