FILE PHOTO: A logo of Mercedes-Benz is seen outside a Mercedes-Benz car dealer, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 28, 2020. REUTERS/Yves Herman
February 11, 2022
BERLIN (Reuters) – Mercedes-Benz Cars and Vans expects an adjusted return on sales of 12.7% in the full year, the company reported in preliminary figures on Friday, with an adjusted EBIT of 14 billion euros ($15.94 billion).
The fourth quarter saw an adjusted return on sales of 15%, it said.
“Solid net pricing, good product mix and favourable used car performance” boosted profitability, the statement said, even as semiconductor shortages limited the number of vehicles the carmaker was able to produce.
Mercedes-Benz, which spun off its commercial vehicle business Daimler Truck in December last year, expects the deconsolidation to have positive effects on the group EBIT in order of magnitude of 9 to 10 billion euros.
However, it was management’s view that this valuation effect would have no difference on cash flow and therefore should be excluded from the basis for determining dividends, it said.
Mercedes-Benz saw a 5% sales drop in 2021 to 2.05 million vehicles, losing its crown for the first time in five years as the premium carmaker with the most vehicles sold to BMW.
Its CEO Ola Kaellenius has said on multiple occasions the carmaker’s aim was to boost profitability rather than focus exclusively on unit sales, as the company strives to raise its multiple on the stock market after splitting from Daimler Truck.
Mercedes-Benz is due to report full-year results on Feb. 24.
($1 = 0.8783 euros)
(Reporting by Victoria Waldersee; Editing by Paul Carrel)
Source: One America News Network
