The automaker has announced gains that exceed financial market expectations
Strong demand in China and more expensive cars helped Mercedes-Benz increase profits in the third quarter. From July to September, the German group won
€5.2 billion before interest and taxes, that’s 83% more than in the same period last year, when the lack of chips slowed deliveries and ruined forecasts.
The automaker has announced gains that exceed financial market expectations. Net profit doubled to 4,000 million euros
thanks to strong demand and the implementation of higher prices, which have been decisive for the “solid” economic result.
“Combined with ongoing cost discipline, we are making the business more resilient and thereby setting the pace for the coming months,” said Mercedes-Benz CFO.Harald Wilhelm.
Turnover rose by 19% to 37.7 billion euros, which is in line with analysts’ forecasts. The star brand increased car deliveries in the summer by more than a third to approximately 530,000 vehicles. Above all
the Chinese businesswhich was no longer suffering as much from the lockdowns imposed by the pandemic, boosted sales figures.
The adjusted margin in the main passenger car business area remained at 14.5% at the high level of the first half and operating profit doubled. You continue to benefit from a special situation:
due to lack of supply due to the chip crisisthe Swabians can get higher prices and focus on orders for the expensive and very profitable models,
like S-Class. Mercedes boss Ola Källenius focuses on class rather than mass. Orders continued to exceed supply in this sector, the manufacturer admits.
Due to the energy crisis and the restrictions caused by the pandemic in China, the company remains vigilant, securing its supply chains and reducing the use of natural gas in production, Mercedes explains. The high inflationary pressure
interest rate hikes by central banks and persistent bottlenecks in global supply chains hamper the outlook.
However, the group is raising its annual profit forecast: it expects the performance of car and van sales to be at least one percentage point higher and is raising the forecast from 13% to 15% and from 9% to 11%, respectively. Calculate that
operating profit it will be significantly and not just slightly above last year’s EUR 16 billion mark, ie by more than 15%.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
