From Financial Modeling Prep: 2025-02-20 02:40:04

Mercedes-Benz unveiled a cost-cutting strategy to boost profitability, aiming for a 10%+ return on sales despite a 40.5% drop in 2024 earnings. Key developments include a 8.1% return on sales, 1.98M vehicle sales, and a dividend cut to €4.30/share. The 2027 plan involves reducing production costs by 10% and launching new models.

The 2025 outlook for Mercedes-Benz is weaker, with expected returns of 6%-8% for the car division and lower unit sales projected. Labour representatives are pushing for minimum 2M sales to sustain capacity. The company’s financial performance can be tracked using the Balance Sheet and Earnings Calendar APIs.

The bullish case for Mercedes-Benz involves successful cost-cutting and stabilization of demand in China and Germany leading to margin rebound. However, declining sales and macroeconomic risks pose a bearish outlook. The company is currently in restructuring mode, focusing on a leaner cost structure for its future.



Read more at Financial Modeling Prep:: Mercedes-Benz Plans Cost Cuts Amid Profit Slump