WASHINGTON (dpa-AFX) - German luxury vehicle major Mercedes-Benz Group AG (MBGYY, MBGAF, MBG.DE) reported Wednesday sharply lower profit in its third quarter as revenues were hit by weak unit sales volume.
Looking ahead, for fiscal 2025, the company continues to expect Group EBIT significantly below last year's 13.6 billion euros, and revenues significantly below last year's 145.6 billion euros.
Both Mercedes-Benz Cars and Vans segments still expect unit sales to be significantly below the previous year's levels of 1,983k units and 406k units, respectively.
Ola Kaellenius, Chief Executive Officer of Mercedes-Benz Group, said, 'Our third-quarter results are in line with our full-year guidance. Our biggest product and tech launch program is well on track: The new CLA and GLC mark the beginning of a series of new models across all segments and drive trains, tailored to specific market and customer needs.'
In the third quarter, net profit dropped 30.8 percent to 1.19 billion euros from last year's 1.72 billion euros. Earnings per share fell 32.5 percent to 1.22 euros from 1.81 euros a year ago.
Earnings before interest and taxes or EBIT plunged 70.2 percent year-over-year to 750 million euros, and adjusted EBIT declined 17.3 percent to 2.10 billion euros.
The earnings in the latest quarter were mainly influenced by lower sales volume, increased expenses due to tariffs and market conditions in China.
Revenue for the quarter dropped 6.9 percent to 32.15 billion euros from prior year's 34.53 billion euros.
Mercedes-Benz Cars segment's revenue fell 7.3 percent year-over-year to 23.74 billion, with 12.3 percent drop in sales volume to 441,453 units.
Mercedes-Benz Vans' revenue declined 13.2 percent to 4.04 billion euros, with 7.9 percent drop in sales volume to 83,843 units.
Mercedes-Benz Mobility revenue was 5.81 billion euros, down 3.4 from last year.
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