Mercedes-Benz beats as rising prices bolster earnings
Mercedes-Benz AG reported better-than-expected earnings as rising prices for its cars outweighed headwinds from supply-chain issues and the war in Ukraine.
Adjusted group earnings before interest and tax rose to 5.3 billion euros ($5.64 billion) in the first quarter, the company said Wednesday, beating the average analyst estimate of 4.77 billion euros.
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Mercedes navigated persisting supply challenges by shifting sales to its higher-margin cars. Still, sales are under pressure because of the Ukraine war and pandemic lockdowns in China, the company’s biggest market. Volkswagen AG earlier this month warned of more supply woes and unpredictable swings of commodity prices.
The German manufacturer said it now expects return on sales at its cars division to come in at the higher end of its guidance of 11.5% to 13%, bolstered by strong sales of top-end vehicles.