The Mercedes-Benz Group, emerged from the split of the Daimler consortium, has closed the first quarter of the year with a net profit of 3,586 million euros, which means a 3% increase in the profits achieved in the same period of the previous year.
The German car consortium has explained that these accounts have been driven by pricing, a sharper focus on high-end vehicles and premium vans, combined with continued cost discipline.
These measures helped lift adjusted sales performance at Mercedes-Benz Cars to 16.4% and 12.6% for Mercedes-Benz Vans even as the Covid-19 pandemic, supply chain bottlenecks of semiconductors and the war in Ukraine continued to affect the business.
The net operating result ( ebit ) increased by 11% compared to the same period of the previous year, reaching 5,229 million euros.
Likewise, the turnover of the Mercedes-Benz Group rose by 6% year- on-year, to 34,858 million euros. The passenger car division increased its turnover by 8% in the first quarter, reaching 25,836 million euros; while the van increased its income by 9%, to 3,687 million euros.
However, worldwide deliveries of Mercedes-Benz Cars fell by 10% compared to the first quarter of the previous year, to 487,008 units sold; while sales of Mercedes-Benz Vans remained flat, reaching 88,508 vehicles delivered.
The German consortium suspended the export of passenger cars, vans and spare parts to Russia, while halting local manufacturing following Russia’s invasion of Ukraine. In addition, the group is in contact with suppliers that have exposure to Ukraine in order to safeguard supply chains. This includes, but is not limited to, transferring production to other locations within the supplier network.
Mercedes-Benz expects supply constraints related to semiconductors and other industrial products and the pandemic to affect business through the remainder of 2022 and continues to closely monitor supply chain risks.
In addition, the consortium has assured that the strict measures taken in China to contain the pandemic “generate uncertainties about the expected development of the market, the supply chain and production.”
For the passenger car division, Mercedes-Benz expects a slight increase in sales and an adjusted return on sales of between 11.5% and 13% . For its part, for the van division, the group estimates that sales will increase slightly above the level of 2021 and forecasts that the adjusted sales performance will remain between 8% and 10%.