Despite the problems with chip supply, the business of the car manufacturer Mercedes-Benz ran much more smoothly last year. With a strong fourth quarter, the company exceeded its forecast for profitability in the automotive industry, as the Dax Group surprisingly announced on Friday on the basis of key data. Above all, the high car prices for new and used cars as well as the focus on expensive models such as the S-Class and Maybach play into Mercedes-Benz’s hands.
According to the preliminary calculations, the Management Board now expects an adjusted return on sales of 12.7 percent for the Passenger Cars and Vans division last year and an operating result before interest and taxes (EBIT) of EUR 14 billion adjusted for special effects. This was more than twice as much as in the previous year, which was burdened by corona lockdowns, when the then still existing Daimler Group achieved an operating profit of 6.8 billion euros here.
Fewer deliveries
The Mercedes-Benz share turned positive after the announcement and rose 2 percent to 71.13 euros at the top of the Dax. In the final quarter, Mercedes achieved a return on sales of a high 15 percent – only around 11 percent had been expected on the market. Of each 100 euros Erls, 15 euros remained as operating profit. Experts from the investment bank Stifel spoke of far better results than expected.
As already known, the carmaker with its parent brand Mercedes-Benz had delivered 464,130 cars in 2021, five percent less than in the previous year – and this despite weeks of factory shutdowns in spring 2020 due to the outbreak of the corona crisis. Especially in the second half of 2021, sales buckled. This was mainly due to the bottleneck in semiconductors and other electronic components.
With 334,210 vehicles, the Group’s vans delivered 2.6 percent more cars. Overall, however, only 2.43 million vehicles are delivered to customers downhill by the manufacturer. This was four percent less than in the previous year.
Kllenius praises cost discipline
However, the management around boss Ola Kllenius had decided to prioritize the installation of available semiconductors in more lucrative models and electric cars in order to still make as high a profit as possible. Already in the sales figures for the past year, Mercedes had spoken of the fact that the luxury and sports car brands Maybach and AMG, but also the profitable S-Class and the Gelndewagen G-Class were well received by the kufers.
Long delivery times, which arise from the restricted production and the current high demand, lead to high sales prices on the market. Hardly any Hndler is currently rumbling around large discounts when buying a car as before.
“Our good result is the result of highly sought-after products and a focus on profitable growth and cost discipline,” said Kllenius, who embarked on a sharp austerity course at the carmaker after taking office in 2019. In addition to the net pricing, a “good product mix” and a “good used car performance” were also the drivers of the development, according to the company.
Group financial data to follow
Because leasing trucks can be sold more expensive on the used car market, this highlights the results of the financial and mobile services division Mercedes-Benz Mobility, in which the leasing cars are on the balance sheet. Mercedes-Benz Mobility achieved an adjusted return on equity of around 22 percent, which is at the upper end of the previous target range of 20 to 22 percent. Based on preliminary figures, the division achieved adjusted earnings before interest and taxes of EUR 3.4 billion.
According to the Group, group financial data are not yet available at the present time due to various effects from the deconsolidation of Daimler’s commercial vehicle business. However, the company expects that the Brsen listing of Daimler Truck will have a high positive one-off effect. For example, operating profit before interest and taxes at Group level will be 9 to 10 billion euros better, it says.
From the management’s point of view, however, this valuation effect should not be included in the calculation of the dividend proposal. The one-off effect has no impact on the group’s cash flow. The truck and bus manufacturer Daimler Truck had gone to the Brse in mid-December. The final figures, including the net result for 2021, are to be published on 24 February. The annual report will then follow on 11 Mar. (dpa/mer)
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