Mercedes Q1 earnings slump as China sales weaken, tariff fears loom
Mercedes-Benz reported a steep 40.7% drop in its first-quarter operating profit, citing sluggish demand for luxury cars in China and warning that potential new U.S. tariffs could further strain its performance.
The company's adjusted operating profit for the January–March period fell 40.7% year-on-year to €2.3 billion ($2.6 billion), while net profit dropped around 43% to €1.7 billion ($1.94 billion), News.Az reports, citing foreign media.
Total sales revenue also decreased by 7.41% to €33.22 billion, the company announced.
Global vehicle deliveries dropped 3.6% to 446,300 units compared to the same quarter last year.
In a statement, Mercedes-Benz warned that its operating profit, free cash flow, and sales revenues could be negatively affected if the recently announced US tariffs on automobile imports are fully implemented.
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