Shares of Mercedes-Benz Group saw a decline today as the luxury car maker announced a decrease in third-quarter profit. The drop in profit was attributed to lower demand and currency effects, and the company has cautioned that these challenges are expected to persist throughout the rest of the year.
At 7:26 AM GMT, shares in Mercedes-Benz were down 5.8%, trading at EUR57.82.
Factors Impacting Performance
Mercedes-Benz pointed to several factors influencing their financial performance. High supply-chain costs, inflation, and currency-exchange rates have all contributed to the decline. During a post-earnings call, Chief Financial Officer Harald Wilhelm expressed his expectation that these headwinds will persist into the fourth quarter.
In the third quarter, net profit amounted to 3.72 billion euros ($3.93 billion), marking a 7% decrease compared to the same period last year. Revenue also experienced a decline of 1.4%, reaching EUR37.20 billion. Additionally, the return on sales for the cars business dropped from 14.5% to 12.4% year-on-year.
Car sales saw a decline of 3.7%, contrasting with a 1.1% increase in van sales.
While facing ongoing challenges, Mercedes-Benz Group remains committed to navigating the current market conditions and ensuring the long-term success of their luxury car brand.