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Mercedes Shares Fall By 8 Percent After Reduced Earning Expectation
Shares of Mercedes-Benz fell by eight percent today after the company lowered its earnings expectations for 2024 due to weaker demand in China.
The company forecasts that its earnings before interest and taxes (EBIT) will be “significantly below” the previous year and that its adjusted return on sales will be between 7.5 and 8.5 percent, down from an earlier forecast of a range of 10 and 11 percent, reports CNBC.
Mercedes-Benz stated that the reduced earnings expectations were due to “further deterioration of the macroeconomic environment” in the Chinese market.
“It is expected that the sales mix in the second half of 2024 will remain unchanged compared to the first half of the year, and therefore weaker than originally expected,” adds the German company.
Sales in Europe are also below expectations as Mercedes-Benz vehicle deliveries fell by 13 percent in August and by three percent in the first eight months of 2024.
On Monday, the German Minister of Economy will hold an industrial summit in Berlin, where solutions will be sought to get out of the crisis in the German auto industry and other sectors, reports Bloomberg.
