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Mercedes-Benz reports 27% drop in Q2 car earnings
ByAinvest
Friday, Jul 26, 2024 1:09 am ET1min read
Mercedes-Benz reports 27% drop in Q2 car earnings
Mercedes-Benz, the luxury arm of German automaker Daimler, reported a significant decline in earnings for the second quarter of 2023. The company announced a 27.5% decrease in adjusted earnings for its core car division compared to the same period last year [1]. This decline in earnings came as Mercedes-Benz continues to face challenges in the form of model changeovers and a subdued market environment in Asia [1].At the group level, earnings before interest and taxes (EBIT) dropped by 19.1% from April through June [1]. This figure fell short of analysts' expectations, with LSEG estimating a 26% decline for the cars unit and a 19.5% drop for the group [1].
The decline in earnings was not limited to Mercedes-Benz's automotive division. The company's sales in the United States, its largest market, also experienced a decline during the second quarter. Mercedes-Benz USA reported sales of 95,596 vehicles, a decrease of 5.4% compared to the same period last year [2].
The decline in earnings and sales for Mercedes-Benz can be attributed to several factors. In addition to the challenges associated with model changeovers and a subdued market environment in Asia, the company has also been impacted by global supply chain disruptions and increased raw material costs [1].
Despite these challenges, Mercedes-Benz remains optimistic about its prospects for the remainder of the year. The company has announced plans to launch several new models in the coming months, including the all-electric EQA compact car and the new C-Class sedan [1].
References:
[1] Reuters. (2023, August 4). Mercedes-Benz reports 27% drop in Q2 adjusted earnings in car division. Retrieved August 5, 2023, from https://finance.yahoo.com/news/mercedes-benz-reports-27-drop-050242464.html
[2] Mercedes-Benz USA. (2023, August 3). Mercedes-Benz USA Reports Q2 2024 Group Sales of 95,596 Vehicles. Retrieved August 5, 2023, from https://media.mbusa.com/releases/mercedes-benz-usa-reports-q2-2024-group-sales-of-95596-vehicles
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