(Reuters) - Mercedes-Benz (OTC:MBGAF)'s core car sales fell in 2024, a tough year for the auto industry marked by waning demand in a weak economy, especially in China, the German luxury carmaker said on Friday.
Despite this, Mercedes stock inched higher after the results and was up 4% by 1120 GMT, topping the German blue-chip index DAX. The shares had lost around 15% in value in 2024.
Stifel analyst Daniel Schwarz pointed to a robust 34% quarterly sales rise in the carmaker's lucrative top-end segment after a poor performance in the third quarter had weighed on earnings.
"The better (product) mix should support a sequential improvement," Schwarz added.
A rare bright spot in the Mercedes release was a 3% quarterly rise in October-December sales in its core car unit, driven by a jump in top-end vehicle sales.
Fourth quarter car sales were up 1% compared with the same period last year.
It sold 1,983,400 cars during the year, down 3% on 2023, weighed down by a 7% drop in China and a 3% decline in Europe.
Annual sales of battery-electric cars (BEV) dropped by 23% to 185,100 vehicles, adding pressure on the carmaker as new, harsher EU CO2 emission reduction targets take effect this year, which could potentially mean costly pooling deals or hefty fines for Mercedes if the BEV sales don't pick up.
The automaker cut its full-year profit margin target twice in 2024 and said it will step up cost cuts, joining a growing number of European rivals blaming a weakening Chinese car market for falling profits and margins.
Mercedes also plans to lower its mid-term profitability targets as market conditions are unlikely to improve in the near future, a source familiar with the matter told Reuters on Tuesday.
The carmaker is due to report full-year 2024 financial results on Feb. 20.