Mercedes-Benz Reports Decline in Revenue and Profit, Maintains Optimistic Full-Year Outlook

Deep News04-29 13:20

Mercedes-Benz has expressed confidence in achieving a recovery in its operating profit, despite a drop in revenue and profitability at the beginning of the year. The German luxury carmaker reported on Wednesday that its first-quarter earnings before interest and taxes (EBIT) amounted to €1.9 billion ($2.23 billion), marking a 17% decline compared to the same period last year. Revenue fell by 4.9% year-on-year to €31.60 billion, while the adjusted operating margin of its core automotive business decreased to 4.1% from the previous 7.3%. Group net profit also dropped by 17% to €1.43 billion. Nevertheless, Mercedes-Benz stated it remains confident that its operating profit in 2026 will be "significantly higher" than last year's level. The company attributed this expectation primarily to "restructuring expenses incurred in the previous fiscal year." Revenue is projected to remain largely stable. The group also indicated it is monitoring the potential impact of the Middle East conflict on consumer confidence.

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