German company Mercedes-Benz has reported a sharp drop in half-year profits, with the automaker’s revenues more than halving compared to the same period last year due to tariffs and weak sales. This was reported by dpa.
Mercedes’ net profit fell by 55.8% — from approximately €6.1 billion to around €2.7 billion. The company cited tariffs, declining sales, and costs associated with efficiency measures as the main factors behind the decline.
The company expects the group’s annual revenue to decline significantly compared to last year. In 2025, the adjusted operating margin for the passenger car division is forecast to be between 4% and 6%, down from 8.1% a year earlier, which was already weak. The automaker also expects a significant decline in sales.
The company’s revenue for the first half of the year fell by 8.6% to approximately €66.4 billion. In comparison, operating profit (EBIT) also fell sharply by approximately 55% from €7.9 billion to €3.6 billion.
It is noted that Mercedes already faced a significant decline in profits in the previous financial year, mainly due to weak performance in China.
The group’s net profit then fell by approximately 28% compared to 2023, to €10.4 billion. Revenue fell by 4.5% to €145.6 billion, and operating profit fell by almost a third to €13.6 billion.