By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The Auto Magazine
  • Home
  • Auto Shows
    Auto ShowsShow More
    LDV (Maxus as Known in China) Makes a Bold Statement at Shanghai Motor Show
    April 30, 2025
    Upcoming OMODA C3 redefines the crossover with cyber-mecha aesthetics
    April 29, 2025
    Mazda Unveils MAZDA EZ-60 New Electric SUV at Auto Shanghai 2025 
    April 29, 2025
    Chery unveils HIMLA brand at 2025 Shanghai Auto Show
    April 28, 2025
    World Champion to drive special Volkswagen Polo at Simola Hillclimb
    April 28, 2025
  • Bikes
    BikesShow More
    BMW Motorrad presents the new R 18 models
    January 22, 2025
    BMW Motorrad presents the BMW Concept F 450 GS
    November 5, 2024
    BMW Motorrad presents the new bikes
    November 1, 2024
    24YM HONDA NX500
    October 15, 2024
    BMW Motorrad presents the new BMW C 400 GT and BMW C 400 X
    October 15, 2024
  • News
    NewsShow More
    Action, adrenaline and lots of excitement at 15th Simola Hillclimb
    April 30, 2025
    Chery puts Tiggo 9 CSH flagship to the test in extreme safety demonstrations
    April 30, 2025
    SA Rugby Welcomes Hyundai as an Official Sponsor of Junior and Youth Week Rugby
    April 30, 2025
    Stellantis Reports Q1 2025 Net Revenues and Shipments
    April 30, 2025
    Aston Martin DBX S: A new flagship for the supercar of SUVs
    April 30, 2025
  • Concepts
    ConceptsShow More
    Audi unveils Q6 e-tron offroad concept
    January 28, 2025
    CITROEN PRESENTS C5 AIRCROSS CONCEPT
    October 15, 2024
    Lotus Unveils Theory 1:  The Future Of Intelligent Performance
    September 23, 2024
    First sketches of Škoda Enyaq RS Race
    May 3, 2024
    W16 Mistral: the art of bringing Bugatti’s ultimate roadster to life
    January 24, 2024
  • EVs
    EVsShow More
    Mazda Unveils MAZDA EZ-60 New Electric SUV at Auto Shanghai 2025 
    April 29, 2025
    RANGE ROVER ELECTRIC PROTOTYPES EXCEL IN LATEST WINTER TESTING AND DEVELOPMENT CYCLE
    April 25, 2025
    ELECTRIFIED LUXURY REDEFINED: THE ALL-NEW LEXUS ES
    April 24, 2025
    Volvo EX90 claims World Luxury Car title
    April 17, 2025
    DFSK South Africa rolls out EC35 Electric Panel Van
    April 15, 2025
  • Motosport
    MotosportShow More
    BROTHER LEADER TREAD KTM DOMINATES OPENING DOUBLE-HEADER OF THE NATIONAL ENDURO CHAMPIONSHIP
    April 30, 2025
    HIGHS AND LOWS FOR HUSQVARNA RACING AT NATIONAL ENDURO DOUBLE-HEADER
    April 30, 2025
    Ford is Ready to Tackle the Simola Hillclimb with Over 6 000 Horsepower
    April 30, 2025
    TOYOTA GAZOO RACING JUNIOR ACADEMY SHINES AT MIDWAY POINT OF NATIONAL ROTAX CAMPAIGN
    April 29, 2025
    Kgopotso ‘KJ’ Mononyane Scores Points in Opening Round of 2025 Red Bull MotoGP Rookies Cup
    April 29, 2025
  • Trucks & Buses
    Trucks & BusesShow More
    Volvo reaches milestone with 5,000 electric trucks sold worldwide
    April 29, 2025
    HINO ONCE AGAIN ANSWERS FARMERS’ CALL FOR HELP
    April 24, 2025
    Daimler Truck Southern Africa appoints Wolf Edmayr as the General Manager of TruckStore
    March 28, 2025
    ISUZU Motors South Africa Celebrates 60 Years of Isuzu Trucks in South Africa
    March 3, 2025
    Itumeleng Segage, General Manager of Hino South Africa
    HINO SCORES MORE THAN 99% IN ALL FOUR CUSTOMER CARE SURVEY CATEGORIES
    February 5, 2025
  • Reviews
    ReviewsShow More
    Tow Like a Pro with the Ford Ranger
    April 10, 2025
    MEET THE ALL-NEW LEXUS GX: A PREMIUM OFF-ROADER REIMAGINED
    April 8, 2025
    Aston Martin Vanquish Volante: The world’s fastest, most powerful front-engine convertible
    March 29, 2025
    The legend grows: introducing the Toyota Hilux Hybrid 48v and GR SPORT II
    March 29, 2025
    THE ALL-NEW GWM P300 – BRING IT ON!
    March 3, 2025
  • Tech
    TechShow More
    Chery unveils AiMOGA: Revolutionising the car-buying experience through intelligent robotics
    April 24, 2025
    Volvo Cars uses AI and virtual worlds with the aim to create safer cars
    March 21, 2025
    Chery drives AI innovation with DeepSeek partnership
    March 3, 2025
    Stellantis Unveils STLA AutoDrive
    February 20, 2025
    Mercedes-Benz and Google Partner on AI-powered Conversational Search within Navigation Systems
    January 14, 2025
Hot News
BROTHER LEADER TREAD KTM DOMINATES OPENING DOUBLE-HEADER OF THE NATIONAL ENDURO CHAMPIONSHIP
HIGHS AND LOWS FOR HUSQVARNA RACING AT NATIONAL ENDURO DOUBLE-HEADER
Action, adrenaline and lots of excitement at 15th Simola Hillclimb
Chery puts Tiggo 9 CSH flagship to the test in extreme safety demonstrations
SA Rugby Welcomes Hyundai as an Official Sponsor of Junior and Youth Week Rugby
Motosport

EDGE-OF-THE SEAT SUPPORT CLASS RACING AT SA ENDURANCE SAMLIN RACING FOUR-HOURS OF ZWARTKOPS

Latest News

BMW Group upgrades FY guidance after strong first half-year

Motosport

MINI Victory at Nürburgring ahead of World Premiere

Trucks & Buses

MAN prepares start of series production of the electric truck

Font ResizerAa
The Auto MagazineThe Auto Magazine
  • Home
  • Auto Shows
  • Bikes
  • News
  • Concepts
  • EVs
  • Motosport
  • Trucks & Buses
  • Reviews
  • Tech
Search
  • Home
  • Auto Shows
  • Bikes
  • News
  • Concepts
  • EVs
  • Motosport
  • Trucks & Buses
  • Reviews
  • Tech
Follow US
Crafted by Intellegere Media. © 2024 The Auto Magazine. All rights reserved.
Latest News

Mercedes-Benz Q3 profitability impacted by market dynamics while preserving solid cash generation

Itumeleng Garebatshabe
Last updated: October 31, 2024 16:44
By Itumeleng Garebatshabe
17 Views
7 Min Read
Share
7 Min Read
SHARE
  • Performance: Solid sales for Mercedes-Benz Cars and Vans. Mercedes-Benz Cars profitability impacted by subdued macro environment and fierce competition. Mercedes-Benz Vans continued to deliver good results. Mercedes-Benz Mobility navigated challenging market conditions.
  • Capital Allocation: Strong cash generation continued. Share buyback cash outs reach €4.3 billion year-to-date.
  • Outlook: Group outlook on EBIT and Free Cash Flow remains in line with September 19th update.

Mercedes-Benz Group AG generated solid sales in the third quarter despite product transitions, a challenging market environment and fierce competition, particularly in China. Continued Free Cash Flow generation from the industrial business reached €2.39 billion for Q3 (Q3 2023: €2.35 billion) supported by favourable working capital development. Net liquidity reached €28.73 billion (Q3 2023: €28.49 billion).

Contents
Divisional resultsOutlook

“The Q3 results do not meet our ambitions. Nonetheless Mercedes-Benz continues to generate solid cash flows even in challenging times. We are taking a prudent view about market evolution going forward and we will step up all efforts on further efficiency increases and cost improvements across the business.” 
Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG  

Divisional results

For Mercedes-Benz Cars weaker macroeconomic conditions and fierce competition, mainly in Asia, outweighed improved product availability leading to adjusted earnings before interest and taxes (EBIT) of €1.2 billion (Q3 2023: €3.4 billion). As previously announced in September, Q3 EBIT was weaker compared with the second quarter due to softer net pricing and a less favourable sales mix, leading to an adjusted Return on Sales (RoS) of 4.7% in the quarter. In addition to tougher market conditions, the Q3 sales mix was also impacted by product transitions, for example the all-new ICE and BEV versions of the G-Class, which will be available in major markets in Q4.

The adjusted Return on Sales (RoS) for Mercedes-Benz Vans was below the previous year with 13.5% (Q3 2023: 15%), driven by lower sales and in line with expectations. A healthy sales mix supported by improved product substance partially compensated lower sales volumes. Furthermore, cost improvements continued.  

The adjusted EBIT for Mercedes-Benz Mobility decreased to €285 million mainly driven by a lower interest margin (Q3 2023: €363 million). The interest margin was impacted by the interest rate development in a competitive environment. As a result, the adjusted return on equity (RoE) reached 8.9% (Q3 2023: 10.4%). 

Outlook

At Mercedes-Benz Cars full-year sales are seen slightly below 2023. Sales in Q4 are expected in the vicinity of Q3. Global Top-End Vehicle (TEV) sales in Q4 are seen with positive momentum supported by availability of the G-Class, the Mercedes-AMG E-Class, Mercedes-AMG GT and the SL. The share of BEV and plug-in hybrid vehicles (xEV’s) is seen between 18% to 19% in 2024. 
The guidance for the adjusted return on sales is seen at 7.5% to 8.5%. Mercedes-Benz Vans adjusted RoS is seen in the range between 14% and 15%. 
The adjusted return on equity for Mercedes-Benz Mobility is seen in the range of 8.5% to 9.5% for 2024. 
Group revenue is seen slightly below the prior year. As communicated on September 19th, Mercedes-Benz Group EBIT and Cash Flow are seen significantly below the prior-year level.

Mercedes-Benz GroupQ3 2024Q3 2023Change 24/23Q1-Q32024Q1-Q32023Change 24/23
Revenue* 34,52837,001-6.7%107,144112,414-4.7%
Earnings before interest and taxes (EBIT)* 2,5174,842-48.0%10,41715,334-32.1%
Net profit/loss* 1,7193,719-53.8%7,80611,371-31.4%
Free Cash Flow industrial business (FCF)* 2,3942,347+2.0%6,2567,874-20.5%
Earnings per share (EPS) in EUR 1.813.44-47.5%7.6210.47-27.2%

*in millions of €

Mercedes-Benz CarsQ3 2024Q3 2023Change 24/23Q1-Q32024Q1-Q32023Change 24/23
Sales in units503,573510,564-1.4%1,463,2631,529,793-4.3%
– thereof xEV87,232102,292-14.7%267,372289,900-7.8%
– thereof BEV42,54461,621-31.0%135,908174,471-22,1%
Share of xEV in unit sales in %17.320.0–18.319.0–
Revenue*25,60227,131-5.6%78,48583,187-5.7%
Earnings before interest and taxes (EBIT)*1,1983,312-63.8%6,41011,312-43.3%
Adjusted earnings before interest and taxes (EBIT)*1,2073,357-64.0%6,29311,282-44.2%
Adjusted return on sales (RoS) in %4.712.4-7.7%pts8.013.6-5.6%pts
Cash flow before interest and taxes (CFBIT)*2,4122,148+12.3%6,8658,898-22.8%
Adjusted cash conversion rate (CCR)2.00.7–1.10.8–

*in millions of €

Mercedes-Benz VansQ3 2024Q3 2023Change 24/23Q1-Q32024Q1-Q32023Change 24/23
Sales in units 91,063105,083-13.3%299,923323,473-7.3%
– thereof BEV4,3756,348-31.1%12,56414,972-16.1%
Share of BEV in unit sales in % 4.86.0–4.24.6–
Revenue* 4,6574,939-5.7%14,32414,677-2.4%
Earnings before interest and taxes (EBIT)* 618715-13.6%2,3812,283+4.3%
Adjusted earnings before interest and taxes (EBIT) * 628743-15.5%2,2622,254+0.4%
Adjusted return on sales (RoS) in % 13.515.0-1.5%pts15.815.4+0.4%pts
Cash flow before interest and taxes (CFBIT)* 893980-8.9%2,1272,167-1.8%
Adjusted cash conversion rate1.51.4–1.01.0–

*in millions of €

Mercedes-Benz MobilityQ3 2024Q3 2023Change 24/23Q1-Q32024Q1-Q32023Change 24/23
Revenue* 6,0076,302-4.7%19,20918,931+1.5%
New business* 14,23515,183-6.2%43,08045,299-4.9%
Contract volume (September, 30)* 134,298133,840+0.3%134,298135,027**-0.5%
Earnings before interest and taxes (EBIT)* 285363-21.5%8351,074-22.3%
Adjusted earnings before interest and taxes (EBIT) * 285363-21.5%8351,350-38.1%
Return on equity (RoE) in % 8.910.4-1.5%pts8.610.3-1.7%pts
Adjusted return on equity (RoE) in % 8.910.4-1.5%pts8.612.9-4.3%pts

*in millions of €
** Year-end figure 2023

TAGGED:Mercedes-BenzQ3 2024

Sign Up For Daily Newsletter

Stay Updated! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Whatsapp Whatsapp LinkedIn VKontakte Telegram Email Copy Link Print
Share
ByItumeleng Garebatshabe
Editor
Follow:
Itumeleng is the Managing Editor of The Auto Magazine. He is a tech and car enthusiast

Follow US

FacebookLike
XFollow
InstagramFollow
YoutubeSubscribe
TiktokFollow
TelegramFollow
Google NewsFollow
LinkedInFollow

You Might Also Like

Latest News

Automobili Lamborghini posts record-breaking numbers in the first nine months of 2024

By Itumeleng Garebatshabe
November 7, 2024
Latest News

Mercedes-Benz Group preliminary results for the Q1 2023 exceed capital market expectations

By Itumeleng Garebatshabe
April 21, 2023
Mercedes-Benz is the first car manufacturer to carry out an X-ray crash test. Its partner in the X-ray crash test is the Ernst Mach Institute of the Fraunhofer Gesellschaft. In the crash test, all processes in vehicle structures and dummies are visible for the first time. A powerful linear accelerator generates up to 1,000 high-resolution images per second.
Technology

Mercedes-Benz is the world’s first car manufacturer to X-ray a crash test

By Itumeleng Garebatshabe
March 15, 2024
Electric Vehicles

Mercedes-Benz opens first European Charging Hub in Mannheim

By Itumeleng Garebatshabe
November 28, 2023
Latest News

High-Powered EV Charging Network, IONNA, Begins Operations in North America

By Itumeleng Garebatshabe
February 10, 2024
Latest News

Mercedes-Benz to open its first high-power charging stations worldwide

By Itumeleng Garebatshabe
August 29, 2023

The Auto Magazine

  • Advertise
  • About Us
  • Contact
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
  • Bikes
  • Electric Vehicles
  • Trucks & Buses
  • Auto Shows
  • Latest News
  • Motosport

Crafted by Intellegere Media. All rights reserved. 2024

Don't not sell my personal information
Join Us!
Subscribe to our newsletter and never miss our latest news, podcasts etc.

Zero spam, Unsubscribe at any time.
adbanner