Mercedes-Benz Q3 earnings drop on weak demand

The earnings of the German automaker Mercedes-Benz Group in the third quarter (Q3) nearly halved year-on-year due to weak demand, according to the company's financial results published on Friday, reported Xinhua.

The earnings before interest and taxes (EBIT) in Q3 plunged by 48 percent to 2.52 billion euros compared to the same period last year.

Quarterly revenue slipped by 7 percent to 34.53 billion euros, while the net profit dropped by 53.8 percent to 1.72 billion euros.

The company reported continued free cash flow generation from its industrial business, reaching 2.39 billion euros in Q3, supported by favorable working capital developments.

Meanwhile, Mercedes-Benz's unit sales saw a slight decline of 1.4 percent, totaling 503,573 vehicles.

Despite weak demand, the company increased its research and development spending in the July-September period, with total R&D expenditures rising by 13.2 percent year-on-year to 2.86 billion euros.

"The financial results for the third quarter do not meet the standards set for ourselves at Mercedes-Benz," said Harald Wilhelm, CFO of Mercedes-Benz Group AG. However, even in these difficult times, "we have once again succeeded in generating a solid cash flow," he added.