Mercedes Sticks to Outlook, Proceeds With €2 Billion Buyback (3)

Mercedes-Benz Group AG confirmed its annual outlook and plans to proceed with a €2 billion ($2.3 billion) share buyback after the company’s automaking margin climbed in the third quarter.

Adjusted return on car sales rose to 4.8% in the period, within the range the manufacturer sees for the full year. The buyback will happen over a period of 12 months, Mercedes said Wednesday. The move suggests the luxury-car maker is confident in its cash generation even as it faces rising competition and trade hurdles.

Mercedes is the only major German automaker that hasn’t cut its outlook in recent weeks, and ...