BERLIN (dpa-AFX) - Mercedes-Benz Group AG (MBGAF), a German luxury vehicle major, on Friday registered lower third-quarter result, mainly due to weaker market environment and fierce competition. In addition, the company expects a decline in its EBIT and revenue for the full year.
For the three-month period, the Group posted a net profit of 1.719 billion euros or 1.81 euros per share, lower than 3.719 billion or 3.44 euros per share, recorded for the same period last year.
Earnings before interest and taxes fell to 2.517 billion euros from prior-year's 4.842 billion euros.
The Group's revenue for the quarter was 34.528 billion euros, compared with 37 billion euros in 2023.
Revenue from Mercedes-Benz Cars was 25.602 billion euros, down from previous year's 27.131 billion euros. Sales of Mercedes-Benz Cars in the quarter was at 503,573 units, lesser than 510,564 units a year ago.
Mercedes-Benz Vans generated revenue of 4.657 billion euros, compared with 4.939 billion euros. The company sold 91,063 Mercedes-Benz Vans, lower than 105,083 units a year ago.
Revenue from Mercedes-Benz Mobility dropped to 6 billion euros from last year's 6.302 billion.
Looking ahead, the Group said, 'Sales in Q4 are expected in the vicinity of Q3. Global top-end vehicle sales in Q4 are seen with positive momentum supported by availability of the G-Class, the Mercedes-AMG E-Class, Mercedes-AMG GT and the SL.'
For the full year, the Group said, it is reaffirming its expectations for a significant decline in EBIT, while it projects a slight decline in revenue.
Annual sales at Mercedes-Benz Cars are also expected to be slightly below prior year.
Mercedes-Benz Cars reaffirmed its annual adjusted return on sales of 7.5 percent to 8.5 percent, while Mercedes-Benz Vans still anticipates its full-year adjusted return on sales to be 14 percent to 15 percent.
Mercedes-Benz Mobility confirmed its annual adjusted return on equity in the range of 8.5 percent to 9.5 percent.
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