Automaker Mercedes-Benz boosted first-quarter profits thanks to higher prices and the sale of many highly profitable models. The consolidated result grew by 12 percent to four billion euros – even more than the already announced operating result. Higher material costs were offset thanks to better prices that Mercedes was able to enforce, the company said on Friday. Operating profit increased by 5 percent to 5.5 percent. “The focus on top-end passenger cars and premium vans has made Mercedes-Benz more weatherproof,” explained CFO Harald Wilhelm (57). Along with the corporate boss Ola Källenius
(53) he radically trims the brand with the star to luxury
. The share
rose slightly premarket on Friday morning.
The Dax group already had operating profit and returns on April 20th reported by mandatory disclosure as the numbers were higher than expected on the stock exchange. The adjusted margins in the main business area of passenger cars were almost 15 percent, as well as in the smaller van division, which even reached more than 15 percent, higher than Mercedes itself had previously aimed for for the year as a whole. With high sales of top models such as the G-Class and the luxury sedan Mercedes-Maybach, the Swabians achieved a record profit margin that was about twice as high as it used to be in good times. Car sales increased by 3 percent to a good 503,000 units. In the case of vans, the sale of many vans ensured an unprecedented level of returns. At almost 99,000 vehicles, sales were 12 percent above the previous year’s level.
Van division outlook raised
After the strong start to the year, Mercedes raised the outlook for the van division – sales should now increase slightly instead of being at the previous year’s level. For the year as a whole, the Swabians are expecting two percentage points more returns, now between 11 and 13 percent. In the passenger car business, the upper end of the previous range of 12 to 14 percent should be reached. The forecast at group level remains unchanged with an operating profit slightly below the 20.5 billion euros of the previous year and group sales at the previous year’s level (150 billion euros). In the first quarter, revenues increased by 8 percent to 37.5 billion euros.
“Six consecutive quarters of double-digit margin results demonstrate a structurally improved business development and increased resilience,” said Mercedes. Analysts are watching closely to see whether the automaker can keep its profit high thanks to cost and pricing discipline, or whether it is becoming careless again after successes in the past. With the high profitability, the group wants to further accelerate the switch to electric cars and digitization, explained Wilhelm, “even in times of economic uncertainty.” Because in addition to inflation and Ukraine-War has added a new strain with the recent turmoil in the banking sector, while chip supplies and energy prices ease.