The profits and revenues of the German luxury car company Mercedes-Benz decreased in the third quarter, after demand declined and the business was affected by fluctuations in foreign exchange rates.
The company said in a statement on Thursday that its net profits in the past quarter decreased by 7% year-on-year to 3.72 billion euros ($3.93 billion), and revenues decreased by 1.4% to 37.20 billion euros.
The company stated that its car sales fell by 3.7% to about 510.5 thousand cars, despite truck sales increasing by 1.1% to about 106 thousand cars.
The business’s free cash flow fell by 22% to €2.35 billion, due to a decline in passenger car sales and increased investments in technology.
Profit margin also fell to 12.4% in the third quarter, which is slightly above the lower end of its target range and below the 14.5% level recorded during the same period a year ago.
AFP