Mercedes-Benz sees FY24 revenue ‘slightly below’ prior-year level

Sees EBIT “significantly below” prior-year level; Sees free cash flow “significantly below” prior-year level. The company said, “The outlook regarding the growth of the world economy continues to be rather modest with regional differences. The US economy remains robust, while economic growth in the eurozone is expected to stay below average. In China, the recently announced monetary and fiscal stimuli should revive growth some- what during the rest of the year. As a result, China’s economic growth for the full year should be in the range of the official government target of around 5%. Despite the recent interest rate cuts by major central banks interest rates remain high in many places and are likely to continue to dampen global growth. Overall, the growth of the global gross domestic product is expected to be rather modest at around 2.5%. Customer demand on the global automotive markets is expected to remain rather weak. Against this backdrop, the latest expectation is for the global car market to come in only on the previous year’s level in full-year 2024. A market volume on the same level as the previous year is expected for Europe. Unit sales for the US light vehicle market are also likely to stay on the level recorded in the previous year. In China, on the other hand, the market volume is expected to grow slightly compared to the previous year’s level. In the Chinese premium and luxury segment, many foreign manufacturers expect sales to be weaker than last year. The situation in key van markets is mixed this year. In Europe, the combined segment for mid-size and large vans is expected to grow slightly compared to the previous year. The market volume for the small van segment in Europe is also expected to be slightly above the previous year’s level. The US market for large vans is expected to be slightly below the previous year’s level. In China, the market volume for the mid-size van segment is expected to be at the prior-year level.”