Mercedes: two profit warnings—will there be a third?

Mercedes reported weaker sales, revenue and profit for Q3 2024, with all three divisions seeing a deterioration in performance. Group revenue dropped by 6.7% reflecting a 3.4% drop in unit sales, unfavourable product and market mixes, negative net pricing and adverse exchange rates. Revenue dropped by 5.6% in the car division, 5.7% in the van division and 4.7% in Mobility (which includes the finance operation).

Reported Ebit was 48% lower at €2.52bn, a margin of 7.3% compared with 13.1% in Q3 2023. On a recurring basis the decrease was also 48%, and the 7.3% margin compared with 13.3% a year earlier.