Mercedes-Benz Backs 2022 Targets After 1Q Earnings Rise

By Kim Richters

Mercedes-Benz Group AG on Wednesday confirmed targets for the year and said that first-quarter revenue and earnings increased despite continuing supply-chain woes.

German premium car maker said net profit rose to 3.49 billion euros ($3.71 billion) from EUR3.40 billion while revenue increased to EUR34.86 billion from EUR32.88 billion.

Adjusted earnings before interest and taxes came in at EUR5.30 billion for the quarter, compared with EUR4.44 billion a year earlier. At the company's cars business, adjusted return on sales stood at 16.4%. The three-month results, which are for continuing operations, were overall boosted by pricing, a focus on premium vehicles and cost efficiency, the company said.

"Earnings were impacted by a positive EUR918 million gain from the sale of Canadian own retail operations and the partial sale of MB Grand Prix, nearly offsetting EUR709 million in expenses tied to adjustments of industrial business activities in Russia and EUR281 million in expenses related to diesel vehicles," it added.

Mercedes-Benz confirmed its targets for continued operations for 2022, which includes group revenue slightly above the level of the previous year and EBIT at prior-year level.

It said a further escalating situation related to Russia and Ukraine could have significant negative consequences for its business and warned that supply contraints and the coronavirus pandemic are expected to effect its operations this year.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

April 27, 2022 01:54 ET (05:54 GMT)

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