Despite a 10% decline in the number of vehicles sold, German automaker Mercedes-Benz continued to benefit from more expensive and profitable automobile sales in the first quarter, with net profit up 3% to reach 3.6 billion euros.
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Operating profit in the January-March period reached 5.2 billion euros, compared to 4.7 billion in 2021. The result includes a positive impact of €918 million on asset sales and fees of €709 million related to production shutdowns in Russia and exports to Russia. country. The group confirmed its turnover targets in a press release on Wednesday.slightly higherStable operating profit in 2022 compared to 2021. But Mercedes warned “extraordinary great uncertaintyparticularly linked to the war in Ukraine and the evolution of the Covid-19 pandemic in China. “A climb beyond the current situation“of conflict”can have significant negative consequences for the business» warns the manufacturer.
Uncertainties regarding the evolution of the market
While the shortage affecting semiconductors, especially due to the Covid-19 pandemic, continues to weigh on for the rest of the year, “more stringent measures“Create a virus in China”uncertainty regarding market development, supply and production“. But the manufacturer still counts”balancing the riskswith profitable growth in sales with more than 10% increase in expected volumes in very high-end cars. Already in the first quarter, the luxury category, which includes especially the S-Class and the AMG brand, reached 16% of the total volume after a 5% increase in sales. This increased the adjusted operating profit margin of the automotive branch by 1.7 points to 16.4%, a ratio widely observed by analysts.
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This core business generated operating profit (EBIT) of €4.3 billion, up 13%. Commercial vehicle sales under the Mercedes-Benz Vans brand remained stable and EBIT reached 348 million Euros (+20%). The age-old pioneer of the automobile, the group officially changed its name on February 1, the final phase of its transformation after its heavy-duty subsidiary was listed on the stock exchange to focus on luxury sedans. It also reported an increase in the average price of its cars sold in 2021.