Raises forecasts and sees “healthy and high” demand in all major markets

Mercedes-Benz Group (MBG) reported an increase in revenue and adjusted earnings before interest and tax (EBIT) for the second quarter compared to last year, despite the effects of “bottlenecks in the semiconductors and supply chain disruptions”.

Supply disruptions led to a 7% drop in sales, Mercedes said, but revenue was still up 8% from a year ago and adjusted EBIT climbed 20%. Better prices and margins have boosted both for Mercedes.

The German automaker also raised its forecast for the year, now seeing revenue for 2022 will be “significantly higher” than last year’s level, compared to a “slightly higher” previously expected. EBIT is now considered to be “slightly above” 2021, rather than “at the level of the previous year”.

Despite the headwinds the automaker faced in the US market, it was still able to respond to its customers after a difficult first quarter.

“I would say the semiconductor crisis continues into 2022 as well, but what we could see in the second quarter was more stable supply,” Mercedes Benz USA CEO Dimitris Psillakis said in an interview with Yahoo. Finance. “So that helps us stabilize our supply to our dealers and supply the market, which has given us a better Q2 than Q1 earlier this year.”

From a demand perspective, globally, the brand says it continues to see “healthy, high-quality” demand in all major markets, and that its order books are well filled, with demand being considered higher than supply throughout the year.

Mercedes USA is also seeing this trend. “We see the demand is quite high, especially in the segment that we operate, the premium segment, the luxury segments,” says Psillakis. “We see demand staying and staying high despite inflation or a weaker economy.”

An optional rear seat display and two of the three front digital dashboard displays are seen in the new all-electric EQS ​​SUV during a visit to the opening of a Mercedes-Benz electric vehicle battery factory, marking one of seven sites producing batteries for their all-electric Mercedes-EQ models, in Woodstock, Alabama, U.S., March 15, 2022. REUTERS/Elijah Nouvelage

As U.S. customers focus on buying premium or premium models from Mercedes, i.e., V8-powered cars and SUVs, Psillakis says demand for its electric offerings is also growing. . Mercedes intends to go all-electric by 2030.

“I would say that’s high,” Psillakis says of consumer appetite for electric vehicles. “We launched the EQS, our electric vehicle sedan, late last year. We had a great seven month run with over 4,000 units sold to US customers. »

For US customers focused on SUVs and crossovers, it also means increased interest in electrified versions of these vehicles.

A wrapped all-electric EQS ​​SUV is seen at the opening of a Mercedes-Benz electric vehicle battery plant, marking one of seven sites producing batteries for their all-electric Mercedes-EQ models, in Woodstock, Alabama, USA United, March 15, 2022.REUTERS/Elijah Nouvelage

A wrapped all-electric EQS ​​SUV is seen at the opening of a Mercedes-Benz electric vehicle battery plant, marking one of seven sites producing batteries for their all-electric Mercedes-EQ models, in Woodstock, Alabama, USA United, March 15, 2022.REUTERS/Elijah Nouvelage

“And the demand already for our EQS SUV, as I said, is coming in September, it’s quite high,” says Psillakis. “Maybe that’s also supported a bit by high gasoline prices which make electric vehicles much more competitive, I would say at the moment, from a consumption perspective.”

Although Mercedes buyers have traditionally been in the higher income brackets, it looks like rising gas prices could weigh on them as well.

As for future electric models, Mercedes’ smaller EQB SUV will hit showrooms later this summer, with the EQE midsize sedan on sale in late fall.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on instagram.

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