Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Mercedes-Benz profits slump on China, tariffs; Shares slide

(Sharecast News) - Shares in Mercedes-Benz fell on Thursday after the famous marque posted a sharp fall in annual earnings and warned of a tougher 2026 amid growing competition a from China and headwinds from US tariffs. Full-year operating profit slumped 57% to €5.8bn - well below analyst forecasts of €6.6bn. The German luxury car maker also took a hit of €1.1bn from tariff costs.

The company said it expected an operating profit margin of 3% - 5% in main autos business, with flat sales volumes.

Net profits almost halved to €5.3bn, down from €10.4bn and auto sales declined by 9.2% as the company cited "fierce competition in China" where revenue slumped by 19% as local manufacturers started to take more market share, particularly in the electric vehicle segment.

The company said it planned more cost cuts this year as well as more product launches as it targeted an 8% to 10% profit margin at the auto division.

Reporting by Frank Prenesti for Sharecast.com

Share this article

Related Sharecast Articles

Air France-KLM submits bid for stake in Portugal's TAP
(Sharecast News) - Air France-KLM said it had submitted a non-binding offer to buy a minority stake in TAP Air Portugal as part of the Portuguese government's plan to privatise its national airline.
Sorted Group proposes to dispose of its main trading subsidiary
(Sharecast News) - Sorted Group announced a proposal to dispose of its main trading subsidiary Sorted Group Limited on Thursday, for a nominal £1, in a move that would see the company become an AIM cash shell and pursue a new acquisition-led strategy.
Speedy Hire warns on worsening market conditions despite strategic progress
(Sharecast News) - Tools and equipment hire company Speedy Hire said on Thursday that it had delivered "significant strategic progress" in FY26, highlighted by its "transformational" partnership with Proservice and continued momentum across its core operations, but also cautioned that trading conditions had deteriorated further in the final quarter amid budget uncertainty, geopolitical tensions and customer‑driven delays.
RBC Capital Markets upgrades Berkeley to 'outperform'
(Sharecast News) - Analysts at RBC Capital Markets upgraded housebuilder Berkeley from 'sector perform' to 'outperform' on Thursday, noting the group had "acted decisively" to the challenges it had faced.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.