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Mercedes-Benz said its third-quarter profit fell nearly 31% from a year earlier, as Germany’s key auto sector grapples with rising costs, competition, and trade barriers.
Profit fell to 1.19 billion euros ($1.38 billion) from 1.71 billion euros in the third quarter of 2024.
Adjusted group earnings before interest and taxes (EBIT) fell to around 2 billion euros in the quarter from 2.5 billion euros a year earlier, weighed down by lower sales volume, increased costs due to customs duties, and negative exchange rate developments, Mercedes said.
The Stuttgart-based company said the figure was adjusted for special items totaling 1.34 billion euros, mostly related to 876 million euros in costs for job cuts in Germany and austerity measures abroad.
“Our results for the third quarter are in line with our guidance for the full year,” said Chief Executive Officer Ola Kalenius.
To boost profitability, Mercedes announced a cost-cutting plan in February to reduce production and fixed costs by 10% by 2027 while improving efficiency.
The company reached an agreement with the labor council on severance pay for employees. The administration said the program is expected to save around €5 billion globally.
The biggest quarterly decline in revenue was recorded in China, where sales fell by 26.9% compared to the same period last year.
Mercedes’ profit for the first nine months fell by half, and the group’s earnings fell by 50.3% to 3.9 billion euros from 7.8 billion euros a year earlier.
Mercedes’ results follow a pattern of decline in the German auto industry, with luxury carmaker Porsche reporting a 95.9% drop in profits in the first nine months of the year.
Also See: About 4,000 Mercedes-Benz Employees Received Severance Pay After Leaving
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