The car manufacturer Mercedes-Benz has lowered its earnings forecast for the current year. The Stuttgart-based company justified this after the stock market closed with a further deterioration in the economic environment, particularly in China. Earnings before interest and taxes (EBIT) are therefore likely to be significantly below the level of the previous year, the company announced.
Until now, Mercedes-Benz had forecast a slight decline. Mercedes-Benz now also sees the free cash flow of the industrial business as being significantly lower than last year. Here, too, the company had recently expected a slight decline.
Car division falls behind
The Mercedes-Benz Cars division is responsible for this, for which the group has lowered its forecast for the adjusted return on sales. It is expected to be between 7.5 and 8.5 percent for 2024, compared to the previously forecast 10 to 11 percent. This implies an expected adjusted return on sales of around 6 percent in the second half of the year.
In China, the slowdown in momentum had an impact on overall sales, including sales in the high-price segment, it said. Overall, Mercedes-Benz expects the sales mix in the second half of the year to remain unchanged from the first half of the year and thus be weaker than originally expected.
The group left the forecasts for the adjusted return on sales of Mercedes-Benz Vans as well as for the adjusted return on equity of Mercedes-Benz Mobility untouched. The share price fell by 4.7 percent in an initial reaction on the Tradegate trading platform.
© dpa-infocom, dpa:240919-930-237667/1
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