German luxury automaker Mercedes-Benz reported a 64% decline in third-quarter earnings in its main car division, falling well short of analysts' expectations as Chinese consumers scaled back on luxury spending amid economic challenges.
"The Q3 results fall short of our ambitions," CFO Harald Wilhelm commented, noting the company plans to intensify cost-cutting measures.
Earnings from July to September were impacted by costs associated with model updates and a challenging market, particularly for the new G-Class SUV versions scheduled for next quarter, Mercedes stated.
One positive in the report was the industrial business’s continued cash flow, which rose 2% year-on-year to 2.39 billion euros ($2.59 billion). However, adjusted earnings before interest and taxes (EBIT) in the car division fell to 1.2 billion euros, significantly missing LSEG's projection of a 3.6% drop to 3.19 billion euros.
CEO Ola Kaellenius cautioned that Chinese consumers remain wary of large purchases due to prolonged economic weakness and a domestic real estate crisis. Mercedes-Benz reduced its full-year profit margin target twice in the third quarter, joining other European automakers attributing decreased profits and margins to China’s slowing car market.
These results come amid ongoing discussions between the EU and China over potential tariffs on Chinese EV imports.
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Timothée Chalamet won the Golden Globe for best male actor in a musical or comedy on Sunday for his role in Marty Supreme, beating strong competition in one of the night’s most closely watched categories.
Hawaii’s Kīlauea volcano is showing increased activity, with lava flowing from two summit craters and flames, smoke and ash rising from the caldera.
Bob Weir, the rhythm guitarist, songwriter and co-founder of the Grateful Dead, has died at the age of 78, his family has said.
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