Mercedes-Benz profit falls 24.6% in Q1
Mercedes-Benz's profit fell by 24.6% year-on-year to €2.974 billion in the first three months of the year, due to a drop in revenue and passenger car sales, the German carmaker said on Wednesday.
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Revenue, in turn, fell 4% in the first quarter to 35,873 million euros, compared to the same period of the previous year, in a challenging environment marked by supply chain bottlenecks and an uncertain global economy.
Earnings before interest and taxes (EBIT) fell 30% in the first quarter, to 3,863 million euros, while the cost of sales increased by 2.5%, to 28,767 million euros.
By business area, Mercedes-Benz Cars - which includes passenger car sales - had a turnover of 25,713 million euros up to March, down 8% year-on-year, after sales fell by the same percentage to 462,978 units, according to the statement.
In addition, its EBIT fell 41% to 2,456 million euros, while sales profitability fell to 9%, compared to 14.9% a year earlier.
In the case of the company's vans (Mercedes-Benz Vans), revenues increased by 6%, to 4,893 million euros, while its EBIT grew by 22% to 933 million, in a period in which it sold 105,425 units, i.e. 7% more.
The turnover of Mercedes-Benz Mobility - the company's financial services and mobility division - increased by 3% to 6,855 million, while its EBIT decreased by 48% to 279 million euros.
The free cash flow from industrial activity reached 2,233 million euros, against 2,164 million euros in the same quarter of the previous year, due to "strong cash conversion, including the positive evolution of working capital", according to the statement.
The German car manufacturer confirmed its forecasts for 2024, a year in which it expects revenues to be at the same level as in 2023, although it remains attentive to the global macroeconomic and geopolitical outlook.
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