Mercedes-Benz
Premium models lift margins amid challenges
Berlin/Frankfurt — German carmaker Mercedes-Benz on Wednesday reported stronger-than-expected margins at its core auto business as improved sales of premium models helped to offset one-off charges related to job cuts as well as declining sales in China.
Like rivals including Porsche and BMW, Mercedes faces particular challenges in the Chinese premium and luxury market, where a price war driven by local carmakers is hitting demand, while US import tariffs also weigh. “We are steering the company through a challenging business environment,” said CEO Ola Kaellenius, pointing to tariffs, intense competition in China and the transition to electric vehicles.
In the third quarter, Mercedes-Benz’s return on sales at its car division was 4.8%, up from 4.7% in the same period last year and beating the 3.9% average estimate in a Visible Alpha poll.
This was supported by a 10% increase in top-end models, including the high-margin Maybach and AMG brands, while free cash flow was about €1.4bn, prompting the company to resume its share buyback programme. Reuters
Kraft Heinz
Food giant cuts outlook as demand weakens
Bengaluru — Kraft Heinz lowered its annual sales and profit forecasts on Wednesday, signalling persistent weakness in demand for its pricier snacks and pantry condiments from budget-conscious consumers amid macroeconomic uncertainty.
Shares of the company, which has said it would split into two with one focused on groceries and the other on sauces and spreads, were down about 1% in premarket trading. Kraft Heinz now expects 2025 organic net sales to fall 3% to 3.5%, compared with its prior target of a decline between 1.5% and 3.5%, weighed down by weakness in markets including Indonesia and tepid demand from retailers in the US
“The operating environment remains challenging,” Kraft CEO Carlos Abrams-Rivera said in a statement. “We see these pressures as persisting beyond the fourth quarter, leading to a longer path to consumer recovery.”
Cost-conscious consumers have switched to cheaper store brands due to high inflation and economic uncertainty. Reuters
Caterpillar
Profit surges on AI-driven energy demand
Caterpillar topped third-quarter profit and revenue estimates on Wednesday as a boom in AI technologies drove demand for its energy equipment, sending its shares up about 4% before the bell.
The industrial equipment maker’s energy and transportation unit has fuelled much of the company’s growth in recent quarters, as AI-driven investments in power-hungry data centres have boosted demand for its power-generation systems.
President Donald Trump’s focus on energy projects has further aided the segment.
The unit, which also makes mining equipment such as excavators and giant shovels, contributes 40% to Caterpillar’s overall revenue. The company’s energy and transportation unit posted a 17% rise in third-quarter sales to about $7.2bn.
Industrial machinery makers, such as Caterpillar, are now grappling with higher costs from Trump’s expansive tariffs on imports, while weak demand and elevated interest rates limit their ability to pass on the burden to customers.
The company now expects its annual tariff costs to be between $1.6bn and $1.75bn, compared with its prior expectation of $1.5bn to $1.8bn.
During the second quarter, companies across the globe flagged a combined annual financial hit between $16.2bn and $17.9bn and nearly $15bn for 2026, according to a Reuters tariff tracker. Reuters
Eli Lilly
Walmart to offer pickup for popular weight-loss drug
Bengaluru — Eli Lilly said on Wednesday it is partnering with Walmart to expand access to Lilly’s weight-loss drug Zepbound, which will be offered for pickup at Walmart pharmacies nationwide by mid-November. Lilly and rival Novo Nordisk started offering vials at discounted prices on their respective websites to expand access and stave off competition from compounded versions or cheaper copies of their weight-loss drugs. Lilly has been providing all approved doses of Zepbound to cash-paying customers through its website LillyDirect, which was launched last year. The drugmaker said Walmart pharmacies will offer Zepbound single-dose vials in all approved strengths, with the lowest dose starting at $349 a month with self-pay. Reuters
Tariffs
Trump plans tariff cut for China’s fentanyl cooperation
Air Force One — President Donald Trump said on Wednesday he expects to reduce US tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl precursor chemicals.
Early this year Trump imposed 20% tariffs on Chinese imports over what he described as Beijing’s failure to curb the flow of precursor chemicals used in the production of fentanyl, which has caused nearly 450,000 US overdose deaths.
Those tariffs have remained in effect despite a fragile trade truce reached by both sides in subsequent talks, as the two superpowers did not make progress on the issue in the absence of decisive action targeting traffickers by China. For its part, Beijing has always strongly defended its chemical control record and accused Washington of using fentanyl to “blackmail” China.
However, China softened its tone on the fentanyl debate ahead of a meeting between both countries’ presidents, expressing sympathy instead of reiterating its usual characterisation of the issue as being an American problem.
“China sympathises with the American people over the fentanyl crisis and has offered help and provided assistance, which have achieved positive results,” Chinese foreign ministry spokesperson Guo Jiakun told reporters at a regular briefing.
Guo said China remains open to continuing such co-operation with the US but urged “practical actions” by Washington for bilateral co-operation. Reuters
