Mercedes-Benz Q2 Revenue and Profits Plummet, Stock Falls
Mercedes-Benz has reported a decline in revenue and profits for the second quarter. The company's stock price reacted negatively to the news, falling by 2.58 percent in early trading on Friday.
The automotive giant's revenue dropped by 4 percent year-on-year to 36.7 billion euros. Profit before interest and taxes (EBIT) plummeted by almost 20 percent to just over 4 billion euros, while net profit fell by around 16 percent to 3.1 billion euros. The adjusted operating margin before interest and taxes in the automotive business stood at 10.2 percent, more than 3 percentage points below the previous year's figure.
Despite these challenges, Mercedes-Benz's stock has shown resilience. In the past 7 days, the stock price has risen by about 3.11 percent, and in the last 24 hours, it increased by 1.24 percent to around 54.92 - 54.95 EUR. This positive trend reflects investor confidence in the company's long-term prospects. However, investors are advised to monitor the situation closely, as a significant fall below 60 euros could warrant further consideration of the company's next steps.
Mercedes-Benz's second quarter results show a decline in key financial indicators. While the stock has demonstrated recent strength, investors should stay vigilant, particularly if the stock market price falls significantly below 60 euros. CEO Ola Källenius has already lowered the profit forecast for the automotive division, indicating potential challenges ahead.
