Mercedes-Benz Lifts 2022 View As Earnings, Revenue Rise in 2Q -- Update
July 27 2022 - 2:30AM
Dow Jones News
By Kim Richters
Mercedes-Benz Group AG on Wednesday raised some targets for the
year and said that second-quarter revenue and earnings increased
thanks to strong demand, pricing and model mix.
The German luxury-car maker said adjusted earnings before
interest and taxes rose 8% to 4.94 billion euros ($5 billion) and
revenue rose 7% to EUR36.44 billion despite lower vehicle sales due
to the semiconductor shortage. Net profit rose to EUR3.11 billion
from EUR3.04 billion.
The three-month results, which are for continuing operations and
exclude the former Daimler Trucks & Buses segment which was
spun off in December, were driven by strong demand, pricing and
model mix, the company said.
At Mercedes-Benz's cars business, adjusted return on sales for
the quarter stood at 14.2%, up from 12.8%.
However, the semiconductor shortage and other supply-chain
disruptions weighed on free cashflow of the industrial business,
which fell 34% to EUR1.42 billion.
Mercedes-Benz lifted some of its targets for 2022 on the back of
the results but also warned of "an exceptional degree of
uncertainty" amid the war in Ukraine, inflation, the coronavirus
pandemic and global supply-chain issues.
On a group level, it expects revenue significantly above
prior-year level, up from a previous target of slightly above, and
EBIT should come in slightly above last year level, compared with a
previous target of at prior-year level. For its cars business, it
targets an adjusted return on sales at 12%-14%, rather than
11.5%-13% expected previously.
"Despite the macro risks, Mercedes-Benz continues to see healthy
and high quality demand for its products for the second half of the
year, in all core markets," it said.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
July 27, 2022 02:15 ET (06:15 GMT)
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