Mercedes sells less but better

Mercedes sells less but better

In the first quarter of 2022, Mercedes-Benz’s net profit increased by 3%, despite sales falling by 10%. Throughout the year, the German group remains cautious due to the current uncertainty.

The adjusted operating margin for Mercedes vehicles reached 16.4% in the first quarter of 2022.

Despite sales falling by 10% in the first quarter of 2022, Mercedes-Benz’s net profit increased by 3% to 3.6 billion euros. The operating profit in the period reached 5.2 billion euros compared to 4.7 billion in 2021. The result includes a positive effect of 918 million euros associated with the sale of assets and costs of 709 million resulting from the suspension of production in Russia and sales abroad .

The group confirmed, on Wednesday April 27, 2022, in a press release, its sales targets “a little higher” in 2022 compared to 2021 with stable operating profit. But Mercedes warned about “Iincredible great uncertainty“It is particularly linked to the war in Ukraine and the evolution of the Covid-19 epidemic in China.”Increase beyond the current situation“of conflict”it can have serious consequences for the business“, warns the manufacturer.

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Shortages affecting semiconductors in particular due to the Covid-19 pandemic will continue to weigh on throughout the year while “more drastic measures“in China against the virus creates”uncertainty about market development, supply and production“. However, the manufacturer is still counting “.deal with risk“with profitable growth in sales, and an increase of more than 10% in volume expected in premium cars.

Already in the first quarter, the luxury segment, which includes the S-Class and the AMG brand, reached 16% of the total volume after a 5% increase in sales. This pushed up 1.7 points to 16.4%, the adjusted operating margin of the automotive branch, which is highly regarded by analysts. This core business generated an operating profit (EBIT) of 4.3 billion euros, up 13%. Sales of commercial vehicles under the Mercedes-Benz Vans brand remained stable and EBIT reached 348 million euros (+20%). (Together with AFP)