Mercedes-Benz expects higher margin on car division in fourth quarter, analysts say

(Reuters) - Mercedes-Benz told investors on Monday it expected the adjusted margin of its passenger car division to be above its 6%-7% forecast for the fourth quarter of 2024, according to analysts at Bernstein Research and Jefferies.

The luxury carmaker, which is due to report full-year results on Feb. 20, was confident it would achieve its full-year margin target of 7.5%-8.5%, the analysts' notes said.

Executives were satisfied with their performance in China in the fourth quarter but remained cautious on the longer-term outlook for the market, according to the analysts, as excess capacity has driven prices down.The automaker held a call with investors that was not open to the press during a closed period on company information ahead of its annual results. It was not available for comment outside business hours.

Mercedes-Benz reported on Jan. 10 that core car sales fell by 3% in 2024, but rose 1% year-on-year in the fourth quarter, boosted by sales of its top-end vehicles.

The automaker cut its full-year profit margin target twice in 2024 and said it will step up cost cuts, joining a growing number of European rivals blaming a weakening Chinese car market for falling profits and margins.

(Reporting by Victoria Waldersee; Editing by Rod Nickel)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• SolarEdge (SEDG) PT Lowered to $31 at Jefferies, 'We see shares as an unappealing short, not a compelling long'
• Kalshi cannot block Nevada oversight of sports prediction markets, US appeals court rules
• US defence firm Covenant plans missile production in Germany, sources say