☄️Shares of European Automakers Collapse After News From Mercedes
🔽Mercedes shares fell more than 8% on Friday after the company became the latest automaker to cut its forecasts for this year as sluggish demand in China and trade disputes weigh on the sector.
©The company said it now expects group earnings before interest and tax (EBIT) to be "significantly below" the previous year's level and adjusted margin on sales to be between 7% and 8%, down from its previous forecast of 10-11 %.
➡️The revision to Mercedes' figures was driven by further deterioration in the macroeconomic environment, primarily due to lower consumption levels in China and a prolonged downturn in the country's real estate sector, the company said in a statement.
💸This impacted overall sales in China, including sales in the Top-End segment. Overall, sales mix in the second half of 2024 is expected to remain unchanged from the first half, and therefore be weaker than originally expected.
📉Fellow German automaker BMW also posted significant losses last week after cutting its 2024 profit forecast due to slumping sales in China and problems with a braking system supplied by Continental.
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🔽Mercedes shares fell more than 8% on Friday after the company became the latest automaker to cut its forecasts for this year as sluggish demand in China and trade disputes weigh on the sector.
©The company said it now expects group earnings before interest and tax (EBIT) to be "significantly below" the previous year's level and adjusted margin on sales to be between 7% and 8%, down from its previous forecast of 10-11 %.
➡️The revision to Mercedes' figures was driven by further deterioration in the macroeconomic environment, primarily due to lower consumption levels in China and a prolonged downturn in the country's real estate sector, the company said in a statement.
💸This impacted overall sales in China, including sales in the Top-End segment. Overall, sales mix in the second half of 2024 is expected to remain unchanged from the first half, and therefore be weaker than originally expected.
📉Fellow German automaker BMW also posted significant losses last week after cutting its 2024 profit forecast due to slumping sales in China and problems with a braking system supplied by Continental.
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