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 firstname.lastname@example.org
(END) Dow Jones Newswires
July 27, 2022 02:15 ET (06:15 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.