Mercedes Benz announced a 31% year-on-year drop in third-quarter profit on Wednesday as it contends with weak sales in China and tariffs on US shipments.
Profit dropped to €1.19 billion from €1.71bn the year before, while revenue fell 7% to €32.15bn. Adjusted EBIT, meanwhile, slipped 17% to around €2.1bn.
The Stuttgart-based firm nonetheless maintained its outlook for the year and CEO Ola Källenius brushed off the profit slump.
“Our third-quarter results are in line with our full-year guidance,” said Källenius.
He added: “Our biggest product and tech launch program is well on track…We remain focused on enhancing customer experience while driving efficiency across our company.”
Mercedes also said it would continue with a €2bn share buyback, approved earlier this year.
Like other European carmakers, Mercedes is contending with higher tariffs on US shipments, but weak Chinese demand is also hitting margins.
Amid a prolonged economic crisis in China, sales dropped 27% in the country. Competition from rivals such as BYD and Xiaomi isn’t helping, as European carmakers struggle to beat Chinese firms on price.
