Mercedes, profit halved in Q3. Competition in China weighed

Quarterly accounts are also due for Mercedes-Benz, which suffered a double profit warning on 20 July and 20 September that caused its share price to fall more than 9%. Profits disappointed in the third quarter, for macro reasons similar to those of other manufacturers, weak demand and the Chinese market which remains the most important for the group but which has seen consumers cut back on luxury goods due to the economic crisis brought about by the end of the property bubble. Sales of high-end models, the S-Class and Maybach, suffered the most. Model renewal costs also increased the pressure, especially for the new versions of the G-Class SUV, which will hit the market next quarter.

Net profit fell to EUR 1.72 billion from EUR 3.72 billion a year earlier (-54%), operating profit from EUR 4.8 billion to EUR 2.5 billion (-48%), and revenue fell by 6.7% to EUR 34.53 billion. Earnings per share fell from EUR 3.44 to EUR 1.81 (-48%). The key profitability indicator, adjusted operating margin, fell to 4.7% in the third quarter, below the company's minimum target of 8% and well below the 12.4% level recorded a year ago. "The third quarter results do not meet our ambitions," commented Chief Financial Officer, Harald Wilhelm. "We have a cautious approach on market developments and will intensify all efforts to increase efficiency and improve costs across the business." The share price yesterday lost 0.98 per cent to EUR 57.8, far from the year's highs above EUR 80.

Chapter cost reduction. Mercedes-Benz has launched a plan with the bar set at 20%c, between 2019 and 2025, of which 15-16% would have already been completed, according to Wilhelm. And in 2024, the company expects sales to be only slightly lower than the previous year. Fourth-quarter sales are expected to be in line with those of the third quarter.