The lowered outlook for Mercedes-Benz has had a negative impact on other German automotive stocks.
Shares of the premium car manufacturer fell by more than 6% due to profit warnings, as reported by DPA and CNBC.
Mercedes-Benz has reduced its profit forecast for this year, citing weak demand in China. The company now expects its earnings before interest and taxes (EBIT) to be “significantly” lower compared to last year. The adjusted return on sales is projected to be between 7.5% and 8.5%, down from the previously estimated 10% to 11%.
Following this announcement, the company’s stock plummeted. By 10:20 AM CEST, shares were down 6.52%, trading at €55.16.
The revised forecast for Mercedes-Benz also negatively impacted other German automakers. Porsche shares dropped 4.83%, BMW fell 3.49%, VW declined 2.41%, and Continental was down 2.26%.
