ISTANBUL

German automaker Mercedes-Benz reported a sharp decline in its first-quarter operating profit, citing sluggish luxury car sales in China and warning that new US tariffs could further weigh on its financial performance.

The company's adjusted operating profit for the January–March period fell 40.7% year-on-year to €2.3 billion ($2.6 billion), while net profit dropped around 43% to €1.7 billion ($1.94 billion).

Total sales revenue also decreased by 7.41% to €33.22 billion, the company announced.

Global vehicle deliveries dropped 3.6% to 446,300 units compared to the same quarter last year.

In a statement, Mercedes-Benz warned that its operating profit, free cash flow, and sales revenues could be negatively affected if the recently announced US tariffs on automobile imports are fully implemented.