German carmaker Mercedes-Benz on Wednesday said its third-quarter profit dropped nearly 31% year-on-year, as Germany's crucial automotive sector struggles in the face of rising costs, competition and trade barriers.
Profit fell to €1.19 billion from €1.71 billion in the third quarter of 2024.
Adjusted group earnings before interest and tax (EBIT) slipped to about €2 billion in the quarter from €2.5 billion a year earlier, weighed down by lower sales volume, increased expenses due to tariffs and negative development of foreign exchange rates, Mercedes said.
The Stuttgart-based firm said the figure was adjusted for special items totalling €1.34 billion, mostly linked to €876 million in costs for job cuts in Germany and savings measures abroad.
"Our third-quarter results are in line with our full-year guidance," said chief executive Ola Källenius.
To boost profitability, Mercedes announced a cost-cutting plan in February aimed at reducing production and fixed costs by 10% by 2027, while also improving material efficiency.
The company reached an agreement with the works council on a severance package for employees in indirect roles. Management said the programme is expected to save around €5 billion globally.
The sharpest quarterly revenue drop was reported in China, where sales fell by 26.9% compared to the same period last year.
Overall, Mercedes' profit for the first nine months fell by half, with group earnings dropping 50.3% to €3.9 billion from €7.8 billion a year earlier, the automaker reported.
The Mercedes results follow a pattern of decline across Germany's carmaking industry, with luxury manufacturer Porsche reporting a 95.9% plunge in profit over the first nine months of the year.
- Mercedes Benz
- Profit falls
- Q3
Source: www.dailyfinland.fi
