Mercedes-Benz Group's 2024 Outlook Lower Returns and Profit Decline

TapTechNews September 20th news, according to Reuters, Mercedes-Benz Group expects the adjusted return on sales in 2024 to be 7.5% to 8.5%, lower than the previously expected 10% to 11%.

At the same time, Mercedes-Benz Group expects the full-year earnings before interest and taxes (EBIT) to be significantly lower than last year's 19.7 billion euros (TapTechNews note: currently about 155.314 billion Chinese yuan), while the previous prediction was a slight decrease.

According to the estimate of the London Stock Exchange Group, the EBIT of this group is expected to be 15.83 billion euros (currently about 124.803 billion Chinese yuan).

The reason for the decline in performance is the decline in sales in its largest market, China. Mercedes-Benz CEO Ola Kallenius said that it will try its best to improve performance, including introducing new products in China to boost sales.

After disclosing the profit warning on Thursday evening local time, the shares of this German luxury carmaker fell to the lowest level in nearly two years, and have fallen by 13.23% so far this year.