FRANKFURT (AFP) – German auto manufacturer Mercedes-Benz yesterday said profits fell significantly in the first quarter as supplier issues hit luxury car sales.
Net profit in the first three months of the year dropped 24.6 per cent compared with the same period in 2023, down to EUR3 billion (USD3.2 billion) from EUR4 billion.
The figure was better than a prediction by analysts surveyed by financial data firm FactSet, who had forecast a figure of EUR2.8 billion.
Revenues in the first quarter fell by 4.4 per cent to EUR35.9 billion as a result of the sales hit.
Mercedes said in a statement its performance had been boosted by “lower raw material prices, tight cost control” and a strong performance in its vans division.
Revenues in the utility vehicles segment were up six per cent in the first quarter to EUR4.9 billion.
The increase propelled a 22.4-per-cent rise in the division’s operating profit to EUR933 million – a closely watched measure of underlying performance.
The strength of the van business however failed to offset a difficult quarter for the group’s car unit.
A first-quarter drop of 7.5 per cent in revenues, which fell to EUR25.7 billion, was down to “supplier bottlenecks and model changeovers in the top-end segment”, the group said.
