Mercedes-Benz surpasses earnings forecasts and sees supply chain headwinds in 2022

Berlin-Mercedes Benz Cars and Vans said on Friday that it expects a supply chain headwind to continue until 2022, adjusting for € 14 billion ($ 15.9 billion) in Earnings before Interest and Tax (EBIT) in 2021. ..

Luxury car makers have announced that they forecast adjusted sales margins of 12.7% for the full year, up from 10% to 12%, as supply chain troubles were offset by a surge in electric vehicle sales.

However, rising raw material prices and a shortage of semiconductors are expected to meet the strong demand for products this year, Chief Financial Officer Harald Wilhelm said in a phone call with analysts.

He said the chip shortage would be mitigated in the second half of 2022, adding that while “a significant portion” of raw material costs were fixed, more units were sold to mitigate the impact of rising costs. rice field.

“There is a headwind (of the raw material) and I think we need a volume lever to mitigate it and fight,” Wilhelm said. “From a pricing perspective, we’ll try what we can do in addition to 2021, but the pricing itself isn’t enough.”

Shares rose to € 75.08 by 1145 GMT, up from € 69.01 when the market opened.

According to data released by Mercedes-Benz in January, the car maker recorded a 5% decline in sales in 2021 and lost its position as the premium car maker that sold the most vehicles to BMW for the first time in five years. rice field.

Ola Källenius, CEO, said after breaking off from Daimler Trucks in December, to increase profitability, not just focus on unit sales, to boost the company’s stock market reputation. Is repeatedly stated to be the purpose.

“Our good results are the result of a very popular product, focusing on profitable growth and cost discipline,” Kaellenius said in a statement.

According to the company, adjusted profit margin for the fourth quarter was 15%, and profitability was boosted by “solid net price, good product mix, and good used car performance.”

Mercedes-Benz expects EBIT to increase by € 9-10 billion due to deconsolidation from Daimler Trucks.

Mercedes-Benz will report full-year results on February 24th.

($ 1 = 0.8783 euros)

By Victoria Waldersee



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