Car manufacturer: Mercedes-Benz again with profit slump at the beginning of the year

At the beginning of the year, carmaker Mercedes-Benz was hit hard by weak business in the important Chinese market. In the first quarter, the DAX-listed company's profits fell by almost 43 percent to 1.73 billion euros, the Stuttgart-based company announced on Wednesday.

Revenue fell by a good 7 percent to 33.2 billion euros, due to the already announced decline in global sales. Earnings before interest and taxes (EBIT) fell by almost 41 percent to 2.29 billion euros due to the difficult situation.

In the important passenger car division, the adjusted operating profit margin, which is closely watched by investors, shrank by 1.7 percentage points to 7.3 percent. This was a smaller decline than analysts had feared.

Due to US import tariffs on cars, the group expects a significant impact on profits this year. However, the impact on demand cannot currently be reliably assessed given the volatile developments and possible countermeasures, it said.

Without taking into account the tariffs that have come into effect, the Stuttgart-based company stated that its previous outlook statements would remain unchanged. If the current trade policy remains in place, negative effects on earnings before interest and taxes, free cash flow, and operating margins in the business segments are to be expected, Mercedes admitted.

The company had previously warned that a 10 percent US import tariff could reduce the operating margin of its passenger car business by one percentage point. At the beginning of April, US President Donald Trump then imposed a 25 percent surcharge on imports from the EU.

© dpa-infocom, dpa:250430-930-481043/1