By Rachel More

BERLIN (Reuters) -German carmaker Mercedes’ operating profit plunged by more than two-thirds in the third quarter, the company said on Wednesday, hit by hundreds of millions of euros in redundancy payouts, as it faces intense competition in the U.S. and China.

Group earnings before interest and taxes came in at 750 million euros ($875 million) in the July-to-September period, down 70% year on year.

Adjusted for 1.3 billion euros in one-off effects, largely due to restructuring costs, including a voluntary redundancy programme launched in Germany in April, the slump in earnings was less severe, down 17% year on year at 2.1 billion euros.

The company maintained its guidance for the full year but warned of a “dynamic” environment, adding it would push ahead with efficiency

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