Shares of Mercedes-Benz Group AG were losing around 5 percent in the German trading after the automobile major reported Tuesday weak profit and revenues in its first quarter amid lower unit sales of cars. The company also confirmed its fiscal 2024 outlook, expecting lower earnings and flat revenues.

Harald Wilhelm, member of the Board of Management of Mercedes-Benz Group, said, “Mercedes-Benz delivered a solid Free Cash Flow in the first quarter thanks to our disciplined go-to-market approach, our desirable products and despite the volatile economic environment and external challenges. While we remain vigilant about the global macroeconomic and geopolitical outlook, we confirm our full-year financial targets for 2024.”

For fiscal 2024, the company still expects group revenue to remain at the prior-year level. Group EBIT is still expected to be slightly below the previous year’s level in a market environment that remains challenging.

For the first quarter, net profit attributable to shareholders was 2.97 billion euros, down from 3.95 billion euros last year.

Earnings per share fell 22 percent to 2.86 euros from 3.69 euros a year ago.

Group earnings before interest and taxes or EBIT for the quarter declined 30 percent to 3.86 billion euros from the prior year’s 5.50 billion euros, reflecting lower raw material prices, tight cost control and a strong performance at Mercedes-Benz Vans.

These effects partially offset lower sales at Mercedes-Benz Cars where supplier bottlenecks and model changeovers in the Top-End segment also led to a less favourable model mix.

Adjusted EBIT was 3.60 billion euros, down 34 percent from prior year’s 5.42 billion euros.

Revenue for the first quarter declined 4 percent to 35.87 billion euros from the prior year’s 37.52 billion euros. The weakness reflected a slight decrease in unit sales, an unfavourable product and market mix and a negative development of the exchange rates.

Mercedes-Benz Cars revenue fell 8 percent from last year to 25.71 billion euros, while revenues from Mercedes-Benz Vans grew 6 percent to 4.89 billion euros. Mercedes-Benz Mobility revenues also increased 3 percent to 6.86 billion euros.

In the quarter, total unit sales of Mercedes-Benz Cars declined 8 percent year-over-year to 462,978 units. Electrified vehicles’ sales dropped 2 percent, despite growth in Plug-in hybrid vehicles.

Total unit sales of Mercedes-Benz Vans were 105,425 units, up 7 from last year. Sales of electrified vehicles fell 17 percent.

In Germany, Mercedes-Benz shares were trading at 71.46 euros, down 4.5 percent.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.