Sales and profits fall at Mercedes in Q2

German high-end carmaker Mercedes-Benz saw its sales in the second quarter fall by just under 4% to €36.7 billion, the Stuttgart-based firm reported on Friday, said dpa.

Earnings before interest and taxes (EBIT) plummeted by almost a fifth compared to the same period last year, to just over €4 billion.

The bottom line for the whole group fell by just under 16% to €3.1 billion.

The adjusted margin before interest and taxes - in other words, the ratio of earnings in day-to-day business to sales - in the firm's core car business was 10.2% from April to June. This was more than 3% below the figure for the previous year.

In the second quarter, sales of the particularly lucrative top models and overall sales fell compared to the same quarter of the previous year, including in the important Chinese market.

Analysts had also expected a slightly higher margin on average.

Mercedes boss Ola Källenius lowered the profit forecast for the car division at the upper end of the range.

However, vans are doing better than previously expected.

On the other hand, the company has restated its group forecasts for total sales this year and earnings before interest and taxes.

"Sales and the model mix are expected to improve in the second half of the year, supported by further market launches of new models particularly in the top-end segment," Källenius was cited as saying in a press release.