Mercedes-Benz Backs 2022 Targets After 1Q Earnings Rise -- Update
April 27 2022 - 5:51AM
Dow Jones News
By Kim Richters
Mercedes-Benz Group AG on Wednesday confirmed targets for the
year and said that first-quarter revenue and earnings increased
despite continuing supply-chain woes.
The German premium car maker said net profit rose to 3.49
billion euros ($3.71 billion) from EUR3.40 billion a year
prior.
Mercedes-Benz's three-month figures are for continuing
operations, stripping out the contribution to the prior-year period
by Daimler Truck Holding AG, which was spun off and separately
listed in December.
Revenue increased to EUR34.86 billion from EUR32.88 billion.
Adjusted earnings before interest and taxes came in at EUR5.30
billion for the quarter, compared with EUR4.44 billion a year
earlier. At the company's cars business, adjusted return on sales
stood at 16.4%.
Results were overall boosted by pricing, a focus on premium
vehicles and cost efficiency, the company said.
"Earnings were impacted by a positive EUR918 million gain from
the sale of Canadian own retail operations and the partial sale of
MB Grand Prix, nearly offsetting EUR709 million in expenses tied to
adjustments of industrial business activities in Russia and EUR281
million in expenses related to diesel vehicles," it added.
Mercedes-Benz confirmed its targets for continued operations for
2022, which includes group revenue slightly above the level of the
previous year and EBIT at prior-year level.
It said a further escalating situation related to Russia and
Ukraine could have significant negative consequences for its
business and warned that supply constraints and the coronavirus
pandemic are expected to affect its operations this year.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
April 27, 2022 05:36 ET (09:36 GMT)
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