Mercedes-Benz Reports Sharp Drop in Q3 Revenue, Sales
(MENAFN) Germany’s luxury automaker Mercedes-Benz reported a sharp decline in both sales and revenue for the third quarter on Wednesday, highlighting ongoing challenges in the premium car market.
As a global leader in luxury cars and vans, Mercedes-Benz recorded an 8.3 percent fall in unit sales, delivering 1,341,427 vehicles across the first nine months of the year.
Third-quarter van sales slipped 7.9 percent year-on-year to 83,843 units, while total van deliveries for the period fell 13.3 percent, signaling a slower contraction compared with previous quarters.
The automaker attributed the drop in earnings to “lower sales volume, increased expenses due to tariffs and negative development of foreign exchange rates.”
Adjusted group earnings before interest and taxes (EBIT) fell 17 percent compared with the same quarter last year. Meanwhile, third-quarter revenue declined 7 percent to 32.15 billion euros (37.42 billion U.S. dollars), and net profit tumbled 31 percent to 1.19 billion euros.
In an effort to reverse the slump, Mercedes-Benz plans to pursue cost reductions and boost its lineup with new electric models, including the CLA and GLC. However, restructuring expenses soared to 876 million euros in Q3, more than double the 400 million euros reported in Q2.
(1 euro = 1.16 U.S. dollar)
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