Mercedes-Benz's revenue fell short of expectations in the second quarter of 2024. The German luxury carmaker anticipates continued weak demand and has adjusted its margins guidance downward. Mercedes-Benz AG, the renowned German luxury automaker, reported a decline in revenue for the last quarter and issued a profit guidance that fell short of expectations, as the company anticipates continued weak customer demand for the rest of the year.
Shares of Mercedes-Benz AG dropped more than 2% at the market open in Frankfurt to €61, reaching their lowest level since late January 2024. Revenue for the second quarter of 2024 stood at €36.7bn, down from €38.
2bn in the same period last year and below analyst predictions of €37.2bn. The cars division achieved a 10.
2% return on sales during this period. The cost of sales amounted to €28.9bn, only slightly down from €29.
2bn in the second quarter of 2023. Gross profit in relation to revenue significantly declined compared to the previous year. Net profit for the second quarter of 2024 was €3.
1bn, a decrease from €3.6bn in the same quarter of 2023. Basic earnings per share dropped to €2.
95 from €3.34 last year but exceeded the expected €2.83.
The carmaker revealed that weaker customer demand became increasingly noticeable as the high order backlogs caused by the pandemic were cleared. The Chinese market contracted slightly, with the premium and luxury segments in China remaining weak. Dr.
Cyrus de la Rubia, chief econom.