Mercedes-Benz exceeds expectations for 2021 - share increases significantly

Created: 02/11/2022 10:33 am

German carmaker Mercedes-Benz beat expectations in its preliminary financial results.

© Matthias Balk/dpa

German carmaker Mercedes-Benz surprises with strong preliminary financial results for 2021 and also exceeds own expectations.

Stuttgart - Mercedes-Benz Group AG* achieved a strong financial result in 2021 based on preliminary unaudited figures.

The Mercedes-Benz Cars & Vans division exceeded the forecast range of 10 to 12% and now expects an adjusted return on sales of 12.7% for the full year.

Mercedes-Benz: Despite the chip crisis - car manufacturer records strong return on sales

Despite ongoing semiconductor supply shortages, Mercedes-Benz Cars & Vans' fourth quarter reported a strong 15.0% adjusted return on sales, which the company said was driven by solid net pricing, good product mix and favorable used vehicle performance.

The strong profitability of the passenger car business also led to a solid free cash flow of the industrial business, which exceeded the company's guidance.

With the publication of the results for the third quarter, the company stated that it expects significant positive effects on Group EBIT in the fourth quarter from the deconsolidation of the spin-off and spin-off of the Daimler commercial vehicle business.

Mercedes-Benz reports strong preliminary figures - share increases sharply

The company now expects this effect on Group EBIT to be in the order of EUR 9 to 10 billion.

This one-off EBIT effect has no impact on cash flow and no significant tax implications.

From the management's point of view, this pure valuation effect should be excluded from the basis for determining the dividend proposal.

As expected, investors reacted positively to the German carmaker's preliminary figures.

Shortly after the stock market opened on Friday morning, the Mercedes-Benz share* was already more than two percent up on the day, leading the leading German index DAX*.