Mercedes-Benz Faces Major Profit Drop
(MENAFN) German luxury car manufacturer Mercedes-Benz has reported a significant drop in its operating earnings for the first quarter, attributing the downturn to weakened demand for high-end vehicles in China.
The company also cautioned that upcoming US trade tariffs could put additional pressure on its future financial results.
During the January to March timeframe, the firm's adjusted operating income plunged by 40.7 percent compared to the same period a year earlier, landing at EURO2.3 billion (USD2.6 billion).
In parallel, net earnings slid by approximately 43 percent, coming in at EURO1.7 billion (USD1.94 billion).
Mercedes-Benz also revealed that its overall sales revenue experienced a 7.41 percent contraction, falling to EURO33.22 billion.
Furthermore, the company saw a decline in global vehicle shipments, which slipped 3.6 percent to 446,300 units, when measured against the corresponding quarter of the prior year.
In a public statement, the automaker issued a cautionary note, indicating that its operating earnings, free cash flow, and sales income could all be adversely impacted if the newly introduced US tariffs on car imports are "fully implemented."
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