Mercedes profits fall due to lower sales

GERMAN carmaker Mercedes-Benz said on Thursday (Oct 26) that its profits fell in the third quarter due to a drop in vehicle deliveries amid shortages of some parts.

Net profits came in seven per cent lower, at 3.7 billion euros (S$5.35 billion), in the July to September period, the company said in a statement.

It was slightly better than a prediction by analysts surveyed by financial data firm FactSet, who had forecast a figure of 3.4 billion euros.

Revenue fell 1.4 per cent to 37.2 billion euros, partly because passenger car sales were around five per cent lower in the quarter due to a shortage of some parts.

While supply chain problems that began during the coronavirus pandemic have largely eased for most carmakers, they still face occasional problems that can slow production.

Sales of top-end Mercedes dropped by 11 per cent in the third quarter, while sales of fully electric vehicles jumped 66 per cent.

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There was some good news, with higher prices for cars and a rise in sales of premium vans.

This “helped to partially offset higher inflation, currency effects and supply-chain related costs”, the carmaker said in a statement.

Mercedes-Benz left its outlook for 2023 unchanged, with revenue and operating profit seen at the same level as last year. AFP