Mercedes-Benz Group AG Adjusts Full-Year Guidance for 2024

In response to recent market developments, Mercedes-Benz Group AG has revised its earnings outlook for the year 2024. The adjustment comes amid a deteriorating macroeconomic environment, particularly in China. The country's GDP growth has slowed, with weaker consumption and a continued real estate downturn affecting overall sales volume, including the Top-End segment.

The sales mix for the second half of 2024 is expected to remain unchanged from the first half, contributing to the anticipation of a dynamic pricing environment. Valuation adjustments are also expected to impact performance during this period.

Mercedes-Benz Cars now forecasts an adjusted Return on Sales between 7.5% and 8.5%, down from the previous 10% to 11%. The valuation adjustments are projected to reduce the Return on Sales by approximately 1 percentage point in the latter half of the year. Mercedes-Benz Vans and Mercedes-Benz Mobility's forecasts remain unchanged.

Additionally, the Group’s EBIT and industrial business free cash flow are expected to fall significantly below last year's levels, as opposed to the previously anticipated slight decline.