Mercedes-Benz has indicated that it anticipates the adjusted return on sales of its cars division for the full year to reach the lower end of its projected range of 12-14%. The luxury car manufacturer cited a drop in third-quarter earnings, partly due to decreased deliveries. Despite intense price competition in the electric vehicle segment, Mercedes-Benz has refrained from reducing prices, prioritizing higher margins over volume sales. However, the company acknowledged that various factors, including higher inflation, foreign exchange headwinds amounting to €329 million, and supply chain-related costs, have impacted its third-quarter earnings.
Revenue for the Mercedes-Benz Group decreased by 1.4% to €37.2 billion ($41.9 billion), while earnings before interest and taxes (EBIT) fell by 6.8% to €4.8 billion ($5.4 billion). The cars division reported an adjusted return on sales of 12.4%, aligning with the lower end of its annual forecast. On a positive note, Mercedes-Benz Vans experienced a stronger quarter, with EBIT rising by 44% to €715 million ($803 million) and an adjusted return on sales of 15%.
Mercedes-Benz attributed the decline in overall sales, which dropped by 4% in the third quarter, to a combination of model changeovers and a shortage of 48-volt systems caused by suppliers. Despite challenges, the company expects the rate of sales to remain consistent in the fourth quarter, keeping its full-year sales target of flat growth unchanged.
