Mercedes-Benz reported for the quarter in a “weak” market – Kommersant

As follows from the published Mercedes-Benz reporting for the third quarter, the company’s revenue decreased by 1.4% year on year and amounted to €37.2 billion. EBIT fell by 6.8%, to €4.8 billion, net profit also fell by 7%, to € 3.7 billion. Earnings per share fell by 6% to €3.44. Of the three divisions of the company, only the production of minivans, minibuses, and compact vans showed revenue growth – by 14.6%, to €4.9 billion.

Presenting the results, Mercedes-Benz executives pointed to the market, which it called “weak” with “serious price competition, especially in the electric vehicle segment.” According to Mercedes-Benz CFO Harald Wilhelm, when market participants begin to sell electric vehicles at prices lower than the prices of cars with an internal combustion engine, while the production of electric vehicles is more expensive, “a very tough situation arises.”

“I can hardly imagine the current situation being tolerable for everyone,” he said. At the same time, Mercedes-Benz does not intend to abandon its targets for sales of electric vehicles, but expects that it will be able to support revenue indicators with higher sales of cars with internal combustion engines if the profitability of electric vehicles turns out to be lower than estimated.

Mercedes-Benz shares fell more than 6% after the earnings release, to their lowest level in nearly a year.

Alena Miklashevskaya