Europe Movers: Mercedes Benz, NatWest Group, Pearson

Inga Muller
05 May, 2025
Frankfurt

Mercedes Benz Group gained 1.6% to €53.30 after the German vehicle manufacturer reported first-quarter 2025 results.

Revenue declined to €33.22 billion from €35.87 billion, net profit dropped to €1.68 billion from €2.97 billion, and diluted earnings per share fell to €1.74 from €2.86 a year ago.

“Weak consumer sentiment and the impact of a significant increase in US tariffs will weigh on growth this year, particularly in the USA,” the company said in a release to investors.

In China, the tariffs are expected to contribute to a significant slowdown in exports, amid persistently weak domestic demand; however, fiscal stimulus should support growth in return, the company added in the statement.

Overall, the company estimated a noticeable slowdown in global growth to just over 2%, partially offset by an increase in sales of mid-size vans in China.

Pearson plc advanced 0.7% to 1,182.50 pence after the UK-based learning company released a first-quarter trading update.

Group sales were up 1%, with growth expected to accelerate in the second half of the year, and sales in the higher education segment were up 6%.

The company launched a £350 million share buyback program during the quarter.

“We continue to make good progress against our strategy, supporting our medium-term growth outlook,” the company said in a release to investors.

Assessment and qualification sales were up 1% in the quarter, virtual learning sales decreased 4%, English language learning sales edged down 6%, and enterprise learning and skills sales were up 1%.

NatWest Group plc surged 0.7% to 479.10 pence after the UK-based banking and financial services company reported first-quarter 2025 results.

Total income increased by 14.5% to £3.98 billion from £3.47 billion, and attributable profit edged up 36.4% to £1.25 billion from £918 million a year ago. 

The company guided fiscal 2025 return on tangible equity to be at the upper end of its previous estimated range of between 15% and 16%.

Income excluding notable items is expected to be at the upper end of the company’s previously guided range of £15.2 billion and £15.7 billion.

The bank expects group operating costs, excluding litigation and conduct costs, to be around £8.1 billion, including around £0.1 billion of one-time integration costs.