The ongoing weakness of the Chinese market for luxury cars prompted the Stuttgart carmaker to trim its outlook after having already done so as recently as July.
Frankfurt-listed shares in Mercedes-Benz were 3.4% lower on the news.
With GDP growth in China losing momentum due to weaker consumption as well as a continued downturn in the real estate sector, the company adjusted its earnings outlook for 2024 for both Mercedes-Benz Cars and the Mercedes-Benz Group.
Mercedes-Benz Cars now expects an adjusted return on sales to be between 7.5% and 8.5% from 10% to 11% previously, implying an expected adjusted return on sales of around 6% for the second half of the year.
As a result, Mercedes-Benz Group's earnings before interest and taxes (EBIT) are now expected to be significantly below last year's level, and free cash flow for the group's industrial business is also expected to be significantly less than the previous year's level.
