Mercedes-Benz Shares Fall As Profit Drops, Headwinds Continue

By David Sachs

Mercedes-Benz Group shares fell Thursday after the car maker reported a drop in third-quarter profit due to lower demand and currency effects, and warned that headwinds would continue for the rest of the year.

At 0726 GMT, shares in Mercedes-Benz were down 5.8% at EUR57.82.

The luxury-car company flagged high supply-chain costs, inflation and currency-exchange rates for the performance. On a post-earnings call, Chief Financial Officer Harald Wilhelm said he expects headwinds to continue into the fourth quarter.

Net profit in the third quarter fell to 3.72 billion euros ($3.93 billion), a 7% drop from the same period last year, the company said. Revenue fell 1.4% to EUR37.20 billion. Return on sales for the cars business was 12.4%, down from 14.5% a year ago.

Car sales fell 3.7% though van sales rose 1.1%.

Write to David Sachs at [e-mail]

(END) Dow Jones Newswires

10-26-23 0356ET