The decline in the profits of Mercedes-Benz in 2024 also signed a weakened sales in China or other monitored financial indicators.
The German car manufacturer Mercedes-Benz recorded a significant decline in profits last year, mainly due to the weakening of sales in China. Therefore, the automaker has already worsened its fore -year profits in the autumn. TASR reports this based on DPA and RTTNEWS reports.
Mercedes-Benz announced on Thursday that its net profit in 2024 fell by 28 % to EUR 10.4 billion. He attributed this to a weak result in China, where customers buy fewer Mercedes higher class vehicles.
Analysts did not expect that
In 2024, the group’s revenues decreased by 4.5 % to EUR 145.6 billion. Profit before interest and taxation (EBIT) fell by almost a third to EUR 13.6 billion, although the result was a bit better than the analysts expected.
For the 4th quarter, the profit fell by the shareholders by 20.3 % to EUR 2.48 billion. In the last three months of 2024, EBIT decreased by 26.5 % to 3.18 billion euros and sales fell by 3.8 % to EUR 38.45 billion.
The sale of cars in the 4th quarter increased by 1.1 % to 520.140 pieces and the sale of supplies fell by 15 % to 105,687 units.
Return of shares
Mercedes plans to initiate a recovery of shares of up to EUR 5 billion this year, waiting for approval at the annual General Meeting.
The automaker predicts that this year it will face even stronger headwinds and expects lower revenues. It estimates that its sales will be slightly below the level of the previous year and also expects a slight decline in the sale of passenger cars.
