(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)
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