Mercedes-Benz Group cut its full-year earnings outlook due to weakness in the Chinese market. It also expects higher costs in the fourth quarter as raw material prices rise, and forecasts group-wide EBIT to remain broadly at the previous year's level.
On the 27th, Mercedes announced that it would cut its full-year adjusted EBIT margin forecast for its core passenger car division to 2-3%. It had previously expected a margin of up to 5%.
German automakers VW and BMW have also cut their earnings outlooks due to worsening conditions in the Chinese market, and Mercedes has now joined them.
The company also indicated that costs are expected to rise in October-December, the fourth quarter, due in part to higher raw material prices. It forecasts full-year group-wide EBIT to be broadly at the previous year's level, withdrawing its previous outlook for a substantial increase in profit.
Mercedes' July-September unit sales in China fell 31% year on year, with a sharp decline continuing since the start of the year. Its share price fell as much as 5.5%.