Mercedes stock falls after new profit warning

(ANSA-AFP) - FRANKFURT AM MAIN, SEP 20 - German auto manufacturer Mercedes-Benz fell sharply on the Frankfurt Stock Exchange on Friday after the group lowered its outlook on the back of weak sales in its key Chinese market. Mercedes shares had lost almost seven percent around 10:00 am local time (0800 GMT) shortly after markets opened. The Stuttgart-based group said late Thursday it now expected its operating profit to be "significantly below the prior year level". Previously, the carmaker had indicated a result "slightly below" the previous year. Mercedes likewise cut profit margin predictions for its car business to between 7.5-8.5 percent from 10-11 percent. The downward revision was the second time Mercedes has cut its guidance in the space of two months, following weak earnings in the second quarter. The new cut "was triggered by a further deterioration of the macroeconomic environment, mainly in China", Mercedes said. (ANSA-AFP).