Mercedes-Benz Group AG Raises Full-Year Guidance Based on Solid Financial Results in the Second Quarter
July 26 2023 - 2:50PM
Business Wire
Due to the solid financial performance in the second quarter of
2023, Mercedes-Benz Group today updated its full-year outlook:
- Industrial Free Cash Flow for the Group is now expected
slightly above the prior-year level (previously: at the same
level)
- Mercedes-Benz Group anticipates EBIT in 2023 at the same level
as last year (previously: slightly below)
- Mercedes-Benz Vans now expects the adjusted Return on Sales
between 13% and 15% (previously: 11% to 13%)
The new outlook is based on the following preliminary financial
results for the second quarter 2023:
- Mercedes-Benz Cars delivered an adjusted Return on Sales of
13.5% (consensus: 13.2%), due to improved net pricing and increased
unit sales - despite negative effects from FX, higher material
costs, one time commodity charges and higher investments.
- The adjusted Return on Sales of the Mercedes-Benz Vans division
rose to 15.5% (consensus: 14.6%) driven by strongly improved net
pricing and significantly increased unit sales.
- Mercedes-Benz Mobility adj. Return on Equity came in at 12.8%
(consensus: 12.9%). Profitability was impacted by lower margins due
to higher refinancing rates and intensified competition in the
financial services sector.
- Mercedes-Benz Group EBIT increased to €5.0 billion (consensus:
€ 4.7 billion), mainly resulting from the higher EBIT of the
Mercedes-Benz Vans division.
- The solid profitability and high cash conversion rates of the
automotive divisions in combination with the dividends from BBAC
and Daimler Truck translated into an industrial free cash flow of
€3.4 billion (consensus: € 2.8 billion).
The full quarterly results and interim report will be published
on July 27th, 2023.
EBIT, Return on Sales (RoS) adjusted, Return on Equity (RoE)
adjusted and Industrial Free Cash Flow are defined on p. 48 of the
Mercedes-Benz Group Annual Report 2022.
Further information on Mercedes-Benz Group is available at:
media.mercedes-benz.com and group.mercedes-benz.com.
Forward-looking statements: This document contains
forward-looking statements that reflect our current views about
future events. The words “anticipate,” “assume,” “believe,”
“estimate,” “expect,” “intend,” “may,” “can,” “could,” “plan,”
“project,” “should” and similar expressions are used to identify
forward-looking statements. These statements are subject to many
risks and uncertainties, including an adverse development of global
economic conditions, in particular a decline of demand in our most
important markets; a deterioration of our refinancing possibilities
on the credit and financial markets; events of force majeure
including natural disasters, pandemics, acts of terrorism,
political unrest, armed conflicts, industrial accidents and their
effects on our sales, purchasing, production or financial services
activities; changes in currency exchange rates, customs and foreign
trade provisions; a shift in consumer preferences towards smaller,
lower-margin vehicles; a possible lack of acceptance of our
products or services which limits our ability to achieve prices and
adequately utilize our production capacities; price increases for
fuel, raw materials or energy; disruption of production due to
shortages of materials or energy, labour strikes or supplier
insolvencies; a decline in resale prices of used vehicles; the
effective implementation of cost-reduction and
efficiency-optimization measures; the business outlook for
companies in which we hold a significant equity interest; the
successful implementation of strategic cooperations and joint
ventures; changes in laws, regulations and government policies,
particularly those relating to vehicle emissions, fuel economy and
safety; the resolution of pending governmental investigations or of
investigations requested by governments and the outcome of pending
or threatened future legal proceedings; and other risks and
uncertainties, some of which are described under the heading “Risk
and Opportunity Report” in the current Annual Report or in this
Interim Report. If any of these risks and uncertainties
materializes or if the assumptions underlying any of our
forward-looking statements prove to be incorrect, the actual
results may be materially different from those we express or imply
by such statements. We do not intend or assume any obligation to
update these forward-looking statements since they are based solely
on the circumstances at the date of publication.
Mercedes-Benz Group at a glance Mercedes-Benz Group AG is
one of the world's most successful automotive companies. With
Mercedes-Benz AG, the Group is one of the leading global suppliers
of high-end passenger cars and premium vans. Mercedes-Benz Mobility
AG offers financing, leasing, car subscription and car rental,
fleet management, digital services for charging and payment,
insurance brokerage, as well as innovative mobility services. The
company founders, Gottlieb Daimler and Carl Benz, made history by
inventing the automobile in 1886. As a pioneer of automotive
engineering, Mercedes-Benz sees shaping the future of mobility in a
safe and sustainable way as both a motivation and obligation. The
company's focus therefore remains on innovative and green
technologies as well as on safe and superior vehicles that both
captivate and inspire. Mercedes-Benz continues to invest
systematically in the development of efficient powertrains and sets
the course for an all-electric future: Mercedes-Benz Cars intends
to go all-electric by the end of this decade wherever market
conditions allow. Mercedes-Benz Vans targets an EV share of more
than 50% by 2023. Shifting from electric-first to electric-only,
the company is accelerating toward a fully electric and
software-driven future. The company's efforts are also focused on
the intelligent connectivity of its vehicles, autonomous driving
and new mobility concepts as Mercedes-Benz regards it as its
aspiration and obligation to live up to its responsibility to
society and the environment. Mercedes-Benz sells its vehicles and
services in nearly every country of the world and has production
facilities in Europe, North and Latin America, Asia and Africa. In
addition to Mercedes-Benz, the world's most valuable luxury
automotive brand (source: Interbrand study, 03 Nov. 2022),
Mercedes-AMG, Mercedes-Maybach and Mercedes me as well as the
brands of Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz
Financial Services and Athlon. The company is listed on the
Frankfurt and Stuttgart stock exchanges (ticker symbol MBG). In
2022, the Group had a workforce of around 170,000 and sold around
2.5 million vehicles. Group revenues amounted to €150.0 billion and
Group EBIT to €20.5 billion.
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version on businesswire.com: https://www.businesswire.com/news/home/20230726956664/en/
Tobias Just, +49 711 17 41341, tobias.just@mercedes-benz.com
Edward Taylor, +49 176 30 94 1776, edward.taylor@mercedes-benz.com
Andrea Berg, +1 917 667 2391, andrea.a.berg@mercedes-benz.com
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