German automaker Mercedes Benz Group AG MBGAF warned of a “brutal” EV market affecting its outlook during the company’s third-quarter earnings call on Thursday after disappointing results, sending shares sliding 5.77% to 57.84 euros on the Frankfurt Stock Exchange.
What Happened: For the third quarter, the group’s EBIT fell 7% to 4.8 billion euros ($5.06 billion) and revenue shrank by 1.4% to 37.2 billion euros.
The company pinned the fall in revenue to a fall in passenger car sales due to supplier chain issues.
Going Forward: The company now expects to touch the lower end of its 12-14% adjusted return on sales forecast for the cars division, owing to intense pricing competition within the BEV segment and other supply issues. Full-year sales, however, are expected to be at the same level as 2022.
Talking about the EV market during an analyst call, company CFO Harald Wilhelm said, "This is a pretty brutal space.”
“I can hardly imagine the current status quo is fully sustainable for everybody,” he added, as reported by Reuters.
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