- Mercedes-Benz Group
- 20 September 2024 09:02:23
Source: Sharecast
Adding to the more woes in a deteriorating Germany manufacturing sector, Mercedes-Benz said adjusted return on sales will be between 7.5% and 8.5% this year, significantly below the 10-11% guidance given previously.
The expected adjusted return on sales in the second half alone would be around 6%.
"This was triggered by a further deterioration of the macroeconomic environment, mainly in China," the company said in a statement.
The manufacturer said economic growth momentum in China has lost steam amid weaker consumption and the continued downturn in the real estate sector, hitting sales volumes including those in the luxury division.
"Overall, the sales mix in the second half of 2024 is expected to remain unchanged versus the first half, and therefore weaker than originally expected," the company said in a statement.
Full-year EBIT is now forecast to be "significantly below" last year's level of €19.7bn, compared with previous guidance of "slightly below".
The stock was down 7.4% at €54.64 by 0945 in Frankfurt, having touched a 52-week low of €54.05 early on.