German auto manufacturer Mercedes-Benz on Tuesday said profits fell significantly in the first quarter as supplier issues hit luxury car sales.
Net profit in the first three months of the year dropped 24.6 percent compared with the same period in 2023, down to three billion euros ($3.2 billion) from four billion euros.
The figure was better than a prediction by analysts surveyed by financial data firm FactSet, who had forecast a figure of 2.8 billion euros.
Revenues in the first quarter fell by 4.4 percent to 35.9 billion euros as a result of the sales hit.
Mercedes said in a statement its performance had been boosted by 'lower raw material prices, tight cost control' and a strong performance in its vans division.
Revenues in the utility vehicles segment were up six percent in the first quarter to 4.9 billion euros.
The increase propelled a 22.4-percent rise in the division's operating profit to 933 million euros -- a closely watched measure of underlying performance.
The strength of the van business however failed to offset a difficult quarter for the group's core car unit.
A first-quarter drop of 7.5 percent in revenues, which fell to 25.7 billion euros, was down to 'supplier bottlenecks and model changeovers in the top-end segment', the group said.
Unit sales of cars were down eight percent to just under 463,000, Mercedes said. The drop was matched in battery vehicles with some 47,500 units sold.
The result reflected 'solid results in all regions except Asia', Mercedes said.
Looking ahead, Mercedes kept its outlook unchanged, saying it expected supply issues to ease over the course of the year.
'Sales levels in the first quarter are seen as the trough, with second quarter volumes expected to be better,' the group said.
