Tuesday , 21 May 2024
Home Global Economy Strong plus at Mercedes-Benz
Global Economy

Strong plus at Mercedes-Benz

Mercedes-Benz significantly exceeded earnings forecasts for the past financial year: According to preliminary figures, earnings before interest and taxes (EBIT) at Mercedes-Benz Cars & Vans improved to 14 billion euros in 2021 – more than twice as much as a year ago . The return on sales rose well above the self-imposed target and is around 13 percent. The company announced this today. The group intends to publish the complete balance sheet for the 2021 financial year at the end of February.

According to CFO Harald Wilhelm, the car manufacturer was able to benefit from a favorable product mix and higher prices. Due to the global shortage of chips, car manufacturers around the world cannot produce as many vehicles as planned, while demand for cars is strong. This drives up prices because far fewer discounts have to be given on new cars.

Positive sentiment on the stock market

The figures from the financial division Mercedes-Benz Mobility also show how well things are going for the German car manufacturer: according to the information, they generated adjusted EBIT of around 3.4 billion euros and a margin of 22 percent.

On the stock exchange, the numbers caused high spirits. The stock soared 6 percent, the biggest jump in price in a year. Jefferies analysts said the strong 2021 numbers should raise expectations for 2022.

Relaxation expected in the chip crisis

For the current financial year, the Group expects raw material prices to rise significantly. Without higher car sales, it will not be possible to compensate for this effect: "It's probably not just about higher prices," said CFO Wilhelm. Because overall sales fell in the past financial year – the group sold only 2.43 million vehicles, four percent less than in the previous year.

That's why the group is also planning to further expand its luxury division and to focus primarily on profitable models. At the same time, improvement in the chip crisis is in sight, said the chief financial officer. A relaxation can be expected from the second half of the year. Capacities are already increasing again, the shortage is increasingly limited to individual suppliers and is no longer an industry-wide problem.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Global Economy

Spotlight on 2023: S&P 500 and the Significance of the 4400 Level

In our past exploration of the financial landscape of 2023, we delved...

Global Economy

AI and Data Analytics Drive Efficiency in Money Laundering Detection

BIS Innovation Hub Turns to Tech for Money Laundering Detection The BIS...

Global Economy

Russell 2000 Gains Momentum as Tech Stocks Outperform Value

Tech stocks have dominated the equity markets in recent months, surpassing value...

Global Economy

Crypto Exchange Bybit Announces Exit from Canadian Market Amid Regulatory Changes

Regulatory Shifts Prompt Bybit's Strategic Withdrawal from Canadian Crypto Market