Mercedes-Benz Posts Strong Q3 Revenue in a Demanding Setting

STUTTGART, Germany–(BUSINESS WIRE)–Mercedes-Benz Group AG (ticker image: MBG) delivered stable monetary ends in the third quarter of 2022 as sturdy demand and wholesome pricing for automobiles and vans, in addition to price self-discipline, helped to elevate Earnings Earlier than Curiosity and Taxes (EBIT) by 83% to €5.2 billion (Q3 2021: €2.8 billion). Group income elevated by 19% to €37.7 billion (Q3 2021: €31.6 billion). The adjusted Return on Gross sales at Mercedes-Benz Vehicles reached 14.5% and 12.7% at Mercedes-Benz Vans.

Mercedes-Benz noticed sturdy demand particularly for its Prime-Finish and electrical autos as buyer orders exceed the constrained provide largely as a result of ongoing semiconductor shortages and bottlenecks in logistics. Because the transformation in direction of an all-electric future continues, Mercedes-Benz Passenger Automotive BEV gross sales greater than doubled within the first 9 months of the yr (+156%) and elevated by 183% within the third quarter.

”Mercedes-Benz as soon as once more delivered stable outcomes due to the sturdy demand for our fascinating merchandise. Together with our ongoing monetary self-discipline, we’re making the corporate extra resilient and setting the tempo for the months forward, as we proceed accelerating our transformation,” mentioned Harald Wilhelm, Chief Monetary Officer of Mercedes-Benz Group AG.

As vitality provide uncertainties in Europe and the continued COVID challenges in Asia proceed to influence shopper sentiment, the corporate stays vigilant and is getting ready to safeguard provide chains and to maximise the potential for decreasing or substituting the usage of pure gasoline in car manufacturing. Mercedes-Benz continues to see a gasoline discount potential of round 50% in Germany if regional pooling is feasible. As a part of the corporate’s strategic objective of switching from gasoline to renewable electrical energy and different vitality sources, Mercedes-Benz unveiled plans to construct a wind farm at its take a look at monitor in Papenburg, northern Germany, with an output of over 100 MW – greater than 15% of Mercedes-Benz Group AG’s electrical energy wants in Germany from the center of the last decade.

Mercedes-Benz Group*

Q3 2022

Q3 2021

Change

22/21

Q1-Q3 2022

Q1-Q3

2021

Change

22/21

Income**

37,716

31,647

+19%

109,014

98,653

+11%

EBIT**

5,196

2,838

+83%

15,047

11,913

+26%

EBIT adjusted**

5,344

3,109

+72%

15,584

12,114

+29%

Internet revenue/loss**

3,998

1,964

+104%

10,782

8,573

+26%

Free money movement (industrial enterprise)**

3,016

3,001

+0%

5,649

6,459

-13%

Free money movement (industrial enterprise) adjusted**

3,309

3,522

-6%

6,588

8,510

-23%

Earnings per share (EPS) in EUR

3.66

1.74

+110%

9.83

7.76

+27%

* from persevering with operations

** in thousands and thousands of €

Investments, free money movement, liquidity

The Free Money Circulation of the commercial enterprise amounted to €3.0 billion (Q3 2021: €3.0 billion), impacted by the build-up of inventories on account of semiconductor bottlenecks, a model-related manufacturing ramp-up and logistical bottlenecks. Inventories rose in comparison with traditionally low ranges final yr. The adjusted free money movement of the commercial enterprise was €3.3 billion (Q3 2021: €3.5 billion). The web liquidity of the commercial enterprise as of September 30 amounted to €23.3 billion (finish of 2021: €21.0 billion). The Group’s investments into property, plant & tools amounted to €0.8 billion within the third quarter of 2022 (Q3 2021: €1.1 billion). Mercedes-Benz Vehicles invested €0.7 billion in property, plant & tools (Q3 2021: €0.8 billion) and Mercedes-Benz Vans invested €0.1 billion (Q3 2021: €0.1 billion). At Group degree, analysis and growth expenditure within the third quarter amounted to €2.3 billion (Q3 2021: €2.2 billion).

Divisional outcomes

Mercedes-Benz Vehicles

Mercedes-Benz Vehicles gross sales amounted to 530,400 autos within the third quarter (Q3 2021: 383,500). Income elevated by 26% resulting from robust mannequin combine and pricing, enhancing the adjusted EBIT by 106%. The adjusted Return on Gross sales rose to 14.5%.

Gross sales within the Prime-Finish Luxurious phase made up 15% of total gross sales within the third quarter, barely above the prior-year’s degree of 78,800 models (+5%). S-Class gross sales in Q3 had been up in all areas besides the U.S., the place a brief inside mannequin yr certification delay held up deliveries. At AMG, a gross sales improve (14.5%) was achieved regardless of a mannequin changeover for the C-Class variant. Gross sales of Core Luxurious autos rose by 100,000 models to 293,300 autos (Q3 2021: 193,300). The Core Luxurious phase contains the EQE, the C-Class and E-Class, in addition to the best-selling GLC, which noticed a successor car launched within the third quarter with enhanced product substance. The EQE noticed 6,000 gross sales through the quarter, matching the EQS. Electrical autos had wholesome margin high quality, together with for the EQA and EQB fashions.

Mercedes-Benz Vehicles

Q3 2022

Q3 2021

Change

22/21

Q1-Q3 2022

Q1-Q3

2021

Change

22/21

Gross sales in models

530,414

383,450

+38%

1,504,538

1,443,509

+4%

thereof xEV

84,850

60,959

+39%

222,444

182,686

+22%

thereof BEV

37,069

18,784

+97%

95,688

57,895

+65%

Income*

28,209

22,434

+26%

81,044

71,332

+14%

EBIT*

4,034

1,838

+119%

12,097

8,649

+40%

EBIT adjusted*

4,081

1,985

+106%

12,157

8,701

+40%

Return on Gross sales (RoS) in %

14.3

8.2

+6.1percentpts

14.9

12.1

+2.8percentpts

Return on Gross sales (RoS) adjusted in %

14.5

8.8

+5.7percentpts

15.0

12.2

+2.8percentpts

Money Circulation Earlier than Curiosity and Taxes (CFBIT)*

3,374

3,253

+4%

7,614

7,811

-3%

Money Circulation Earlier than Curiosity and Taxes (CFBIT) adjusted*

3,552

3,626

-2%

8,180

9,068

-10%

Money Conversion Fee adjusted

0.9

1.8

0.7

1.0

*in thousands and thousands of €

Mercedes-Benz Vans

At Mercedes-Benz Vans, third-quarter unit gross sales reached 104,000 autos worldwide (Q3 2021: 88,000) regardless of semi-conductor shortages. Adjusted EBIT reached €0.5 billion (Q3 2021: €0.2 billion) due to persevering with robust margin with wholesome mannequin combine and web pricing. Within the first 9 months of the yr, Mercedes-Benz Vans elevated gross sales of electrical vans by one third in comparison with the year-earlier interval.

Mercedes-Benz Vans

Q3 2022

Q3 2021

Change

22/21

Q1-Q3 2022

Q1-Q3

2021

Change

22/21

Gross sales in models

103,978

87,954

+18%

292,611

274,740

+7%

Income*

4,309

3,546

+22%

12,103

10,613

+14%

EBIT*

497

165

+201%

1,227

887

+38%

EBIT adjusted*

546

189

+189%

1,426

935

+53%

Return on Gross sales (RoS) in %

11.5

4.7

+6.8percentpts

10.1

8.4

+1.7percentpts

Return on Gross sales (RoS) adjusted in %

12.7

5.3

+7.4percentpts

11.8

8.8

+3.0percentpts

Money Circulation Earlier than Curiosity and Taxes (CFBIT)*

434

402

+8%

1,066

307

+247%

Money Circulation Earlier than Curiosity and Taxes (CFBIT) adjusted*

529

504

+5%

1,299

989

+31%

Money Conversion Fee adjusted

1.0

2.7

0.9

1.1

*in thousands and thousands of €

Mercedes-Benz Mobility

Within the third quarter of 2022, Mercedes-Benz Mobility reached an adjusted Return on Fairness (RoE) of 15.8%. The brand new enterprise of Mercedes-Benz Mobility declined barely by 3% to €14.3 billion in comparison with the prior-year’s quarter. Nevertheless, the prior-year determine nonetheless included the brand new enterprise from Daimler Vehicles & Buses till the spin-off of the Daimler business car enterprise. On the finish of September 2022, contract quantity amounted to €135.7 billion and was thus on the similar degree as on the finish of 2021. Adjusted EBIT decreased to €0.6 billion in comparison with the prior-year’s quarter, pushed by elevated credit score threat reserves due to a weaker macroecono-mic outlook and resulting from headwinds within the type of growing rates of interest and the decrease quantity.

Mercedes-Benz Mobility

Q3 2022

Q3 2021

Change

22/21

Q1-Q3 2022

Q1-Q3

2021

Change

22/21

Income*

6,599

6,855

-4%

20,096

20,695

-3%

New enterprise*

14,255

14,633

-3%

42,910

48,588

-12%

Contract quantity (September, 30)*

135,731

148,091

-8%

135,731

133,687**

+2%

EBIT*

577

943

-39%

1,934

2,611

-26%

EBIT adjusted*

577

943

-39%

1,934

2,564

-25%

Return on Fairness (RoE) in %

15.8

23.3

-7.5percentpts

17.7

22.5

-4.8percentpts

Return on Fairness (RoE) adjusted in %

15.8

23.3

-7.5percentpts

17.7

22.1

-4.4percentpts

*in thousands and thousands of €

** Yr-end determine 2021

Outlook

The macroeconomic and geopolitical circumstances proceed to be characterised by an distinctive diploma of uncertainty, together with the battle in Ukraine, its results on provide chains and on the provision and the event of costs for vitality and uncooked supplies. Additional results as a result of quickly altering state of affairs in Russia and Ukraine should not at the moment recognized and haven’t but been taken under consideration in our key figures. An escalation past its present state might probably have substantial adverse penalties for Mercedes-Benz enterprise actions.

As well as, the continued very excessive inflationary stress for customers and corporations and the related central financial institution will increase in rates of interest in addition to ongoing bottlenecks in international provide chains make the outlook harder. Not least the additional course of the pandemic, specifically in China, holds uncertainties for the anticipated growth of the market.

Mercedes-Benz Vehicles

Mercedes-Benz Vehicles continues to anticipate gross sales barely above final yr and for demand to outstrip provide. Gross sales within the fourth quarter are seen above gross sales in This autumn final yr. Mercedes-Benz Vehicles now expects the adjusted RoS for the total yr to be within the vary of 13%-15%, slightly than 12%-14% seen earlier. The money conversion charge for Mercedes-Benz Vehicles stays unchanged at between 0.8 to 1.0. Investments in property, plant & tools and analysis and growth stay unchanged at “considerably above” the prior-year degree.

Mercedes-Benz Vans

Mercedes-Benz Vans expects gross sales to stay barely above 2021 ranges. The adjusted RoS at Mercedes-Benz Vans is now anticipated to be at 9% – 11%, slightly than 8% – 10% beforehand. The money conversion charge for Mercedes-Benz Vans has been adjusted to 0.8 to 1.0, from 0.6 to 0.8 beforehand. Investments in property, plant & tools and analysis and growth stay unchanged at “considerably above” the prior-year degree.

Mercedes-Benz Mobility

The adjusted Return on Fairness at Mercedes-Benz Mobility remains to be seen within the vary of 16% to 18%.

Mercedes-Benz Group

Income continues to be anticipated at “considerably above” 2021 ranges. Group EBIT is now seen “considerably above” the prior yr, slightly than “barely above.” Free Money Circulation from the commercial enterprise stays at “prior-year degree.”

Hyperlink to press info “Gross sales figures Q3 2022”:

Mercedes-Benz Vehicles: group-media.mercedes-benz.com/Gross sales-Q3/automobiles

Mercedes-Benz Vans: group-media.mercedes-benz.com/Gross sales-Q3/vans

Hyperlink to capital market presentation Q3 2022: group.mercedes-benz.com/q3-2022

Additional info on Mercedes-Benz Group AG is on the market at:

group-media.mercedes-benz.com and group.mercedes-benz.com

Ahead-looking statements:

This doc accommodates forward-looking statements that replicate our present views about future occasions. The phrases “anticipate,” “assume,” “imagine,” “estimate,” “anticipate,” “intend,” “might,” ”can,” “might,” “plan,” “venture,” “ought to” and comparable expressions are used to establish forward-looking statements. These statements are topic to many dangers and uncertainties, together with an adversarial growth of world financial circumstances, specifically a decline of demand in our most necessary markets; a deterioration of our refinancing prospects on the credit score and monetary markets; occasions of pressure majeure together with pure disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their results on our gross sales, buying, manufacturing or monetary providers actions; modifications in forex alternate charges, customs and overseas commerce provisions; a shift in shopper preferences in direction of smaller, lower-margin autos; a potential lack of acceptance of our services or products which limits our potential to attain costs and adequately make the most of our manufacturing capacities; worth will increase for gas or uncooked supplies; disruption of manufacturing resulting from shortages of supplies, labor strikes or provider insolvencies; a decline in resale costs of used autos; the efficient implementation of cost-reduction and efficiency-optimization measures; the enterprise outlook for corporations during which we maintain a big fairness curiosity; the profitable implementation of strategic cooperations and joint ventures; modifications in legal guidelines, laws and authorities insurance policies, notably these referring to car emissions, gas economic system and security; the decision of pending governmental investigations or of investigations requested by governments and the result of pending or threatened future authorized proceedings; and different dangers and uncertainties, a few of that are described below the heading “Threat and Alternative Report” within the present Annual Report or within the present Interim Report. If any of those dangers and uncertainties materializes or if the assumptions underlying any of our forward-looking statements show to be incorrect, the precise outcomes could also be materially completely different from these we specific or indicate by such statements. We don’t intend or assume any obligation to replace these forward-looking statements since they’re primarily based solely on the circumstances on the date of publication.

Mercedes-Benz Group at a look

Mercedes-Benz Group AG is likely one of the world’s most profitable automotive corporations. With Mercedes-Benz AG, the Group is likely one of the main international suppliers of premium and luxurious automobiles and vans. Mercedes-Benz Mobility AG presents financing, leasing, automobile subscription and automobile rental, fleet administration, digital providers for charging and cost, insurance coverage brokerage, in addition to revolutionary mobility providers. The corporate founders, Gottlieb Daimler and

Carl Benz, made historical past by inventing the car in 1886. As a pioneer of automotive engineering, Mercedes-Benz sees shaping the way forward for mobility in a secure and sustainable method as each a motivation and obligation. The corporate’s focus subsequently stays on revolutionary and inexperienced applied sciences as properly

as on secure and superior autos that each captivate and encourage. Mercedes-Benz continues to speculate systematically within the growth of environment friendly powertrains and units the course for an all-electric future: The model with the three-pointed star pursues the objective to go all-electric, the place market circumstances permit. Shifting from electric-first to electric-only, the world’s pre-eminent luxurious automobile firm is accelerating towards an emissions-free and software-driven future. The corporate’s efforts are additionally targeted on the clever connectivity of its autos, autonomous driving and new mobility ideas as Mercedes-Benz regards it as its aspiration and obligation to stay as much as its accountability to society and the surroundings. Mercedes-Benz sells its autos and providers in almost each nation of the world and has manufacturing amenities in Europe, North and Latin America, Asia and Africa. Along with Mercedes-Benz, the world’s most beneficial luxurious automotive model (supply: Interbrand research, 20 Oct. 2021), Mercedes-AMG, Mercedes-Maybach, Mercedes-EQ and Mercedes me in addition to the manufacturers of Mercedes-Benz Mobility: Mercedes-Benz Financial institution, Mercedes-Benz Monetary Companies and Athlon. The corporate is listed on the Frankfurt and Stuttgart inventory exchanges (ticker image MBG). In 2021, the Group had a workforce of round 172,000 and bought 2.3 million autos. Group revenues amounted to €168.0 billion and Group EBIT to €29.1 billion.

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