Mercedes-Benz Group reported annual earnings of 20.5 billion euros ($21.80 billion), exceeding analysts’ expectations. However, the premium automaker issued a warning that this year’s earnings would be lower due to economic uncertainty.
The automaker, one of the few German businesses that, in spite of the uncertain economic climate, maintained or even increased its profit forecast for 2022, hit its forecast of a 13%–15% adjusted return on sales in the cars division, reporting a 14.6% margin.
Despite expecting the same level of Mercedes-Benz Cars unit sales, the company predicted a lower adjusted return on sales for the cars division in 2023 of 12%–14% and slightly lower group earnings than in 2022.
In addition, Mercedes-Benz announced that it will propose a dividend increase to 5.20 euros per share from 5 euros, or a total payout of 5.6 billion euros.
According to a statement released by the company, demand in the United States is still high but that orders were slow to come in from Europe and sales were slow in the Chinese market because of COVID-19 restrictions in the fourth quarter.
Post Your Comments