Mercedes-Benz Says It Beat 2021 Targets

   By Cristina Roca

Mercedes-Benz Group AG said Friday that it achieved strong financial results in 2021 and beat its own guidance for the year.

The auto maker, formerly known as Daimler, said the Mercedes-Benz Cars & Vans segment should post adjusted earnings before interest and tax of around 14 billion euros ($16 billion), and that adjusted return on sales for the unit should be 12.7%, beating the company's guidance of 10%-12%.

During the fourth quarter, the unit's adjusted return on sales was 15% despite continued semiconductor shortages, Mercedes-Benz said.

The Mercedes-Benz Mobility division's adjusted EBIT for the year was roughly EUR3.4 billion, with an adjusted return on equity of about 22%, compared with guidance of 20% to 22%, the company said.

Following the spinoff of the Daimler commercial vehicle business, industrial free cash flow for the new group structure should be at prior year level, or around EUR8.5 billion, compared with guidance of slightly below previous-year levels.

Mercedes-Benz also expects a one-off positive effect of about EUR9 billion-EUR10 billion to its EBIT from the spinoff.

"It is the perspective of the management that this pure valuation effect should be excluded from the basis for determining the dividend proposal," the company said.

Write to Cristina Roca at cristina.roca@wsj.com

(END) Dow Jones Newswires

February 11, 2022 03:39 ET (08:39 GMT)

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