BERLIN — Mercedes-Benz expects a major rise in revenues and barely increased earnings in 2022 on the again of robust automobile costs and mannequin combine at the same time as the corporate warned of financial turbulence as a result of Europe’s worsening vitality disaster, excessive inflation and protracted supply-chain issues.
The corporate on Wednesday raised its outlook after an 8 % bounce in second-quarter adjusted earnings to 4.9 billion euros ($4.97 billion). Mercedes had beforehand stated it anticipated solely barely increased revenues this 12 months and earnings equal to final 12 months.
Nonetheless, uncertainty as a result of battle in Ukraine, excessive inflation, rate of interest rises, and the pandemic, significantly in China, may all weigh on the enterprise, Mercedes stated.
“We’re enhancing our vigilance and resilience to handle more and more complicated macroeconomic and geopolitical challenges,” CEO Ola Kallenius stated in an announcement. “On the similar time, we’ve good causes to stay assured, with ongoing robust demand, a recent automobile portfolio and additional key product launches this 12 months.”
Within the newest quarter, Mercedes noticed an adjusted return on gross sales of 14.2 % within the Mercedes-Benz Vehicles division, up from 12.8 % in the identical quarter final 12 months, whereas returns in its vans division fell barely to 10.1 % from 11.4 % final 12 months.
Wanting ahead, it raised its anticipated adjusted earnings margin for its automobiles division within the second half to 12 % to 14 % from 11.5 % to 13 % beforehand.
The primary half noticed a 15 % margin however increased materials prices, analysis and growth spending and results from the used automobile market may weigh on the second half, the corporate stated.
Decrease gasoline consumption
Addressing issues over how German trade will handle gasoline consumption within the occasion of additional cuts to produce from Russia, Kallenius stated Mercedes has lowered its gasoline consumption by 10 % in Europe whereas sustaining full operations.
The corporate stated it may cut back its gasoline consumption in Germany by 50 % if regional pooling came about. It stated it had discovered a solution to function the paint store in its Sindelfingen plant with out gasoline in an emergency. The plant builds the high-end electrical EQS, S-Class and Maybach fashions.
A worsening financial local weather weighing on shoppers are combining with the continuing struggles to acquire sufficient semiconductors for automakers. Ongoing pandemic lockdowns in China stopping individuals from shopping for automobiles are one other risk.
Even so, Mercedes predicted wholesome demand for its fashions throughout the second half with stable order books indicating demand continues to outstrip out there automobiles.
New chip contracts
Kallenius stated chip provide constraints hampered manufacturing of electrical and top-end automobiles within the second quarter and are the primary operational situation for the second half. The carmaker has already struck a number of contracts immediately with chipmakers, he stated.
Like different carmakers, Mercedes is prioritizing manufacturing of its most profitable fashions.
Mercedes deliveries fell 7 % throughout the second quarter due to an absence of chips and logistical challenges. Order books are full and the corporate expects to see a slight improve in gross sales, with the top-end luxurious section forecast to develop greater than 10 %.
Whereas chip availability continues to be tight, automakers are seeing indicators of the jam easing. Volvo Vehicles this month stated enhancements late within the second quarter have been serving to manufacturing resume.
Reuters and Bloomberg contributed to this report