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Mercedes-Benz on Wednesday raised its full-year forecast for operating profit, on the back of higher prices that helped the luxury carmaker shrug off higher material costs and negative currency effects.
The German automaker said it now expects earnings before interest and tax (EBIT) in 2023 to be on par with the 20.5 billion euros ($22.7 billion) made in 2022, having previously expected a slight decline.
Frankfurt-listed shares in the company, which is scheduled to report full second-quarter results on Thursday, narrowed losses following the news to trade 0.4% lower.
EBIT for the April-June quarter profit rose to 5 billion euros compared with a consensus of 4.7 billion euros, Mercedes-Benz said, also citing higher earnings from its Vans division.
That segment is now expected to deliver an adjusted return on sales of 13% to 15% in 2023, up from 11% to 13% previously forecast, marking the second outlook upgrade in less than three months.
The Vans division posted a preliminary adjusted return on sales of 15.5% in the quarter, driven by improved net pricing and increased unit sales, Mercedes-Benz said, adding its Cars division achieved an adjusted return on sales of 13.5%.
Earlier this month, the company reported a 6% growth in its second-quarter vehicle sales as a result of high demand for all-electric and top-end vehicles.
($1 = 0.9021 euro)
(Reporting by Shivani Tanna in Bengaluru; Additional reporting by Christoph Steitz; Editing by Arun Koyyur and Jonathan Oatis)
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