BERLIN (Reuters) – Mercedes-Benz saw a rise in earnings before interest and taxes (EBIT) to 5.2 billion euros ($5.54 billion) in the first quarter even as deliveries of passenger cars fell 10%, with high prices making up for supply chain troubles.
The Mercedes-Benz Cars division reported an adjusted earnings margin of 16.4%, compared to 12.6% for Mercedes-Benz Vans.
The premium carmaker confirmed its guidance for the year, expecting an adjusted EBIT margin of 11.5 – 13% in the cars division, but warned worsening effects of the war, COVID-19 lockdowns and semiconductor shortages could alter its outlook.
Adjusting its business activities in Russia, where Mercedes-Benz suspended operations following the country’s invasion of Ukraine, incurred expenses of 709 million euros.
“An escalation over the current situation could have considerable negative consequences for Mercedes-Benz business,” the company said in a statement.
It expects supply chain bottlenecks of semiconductors and other products to carry on impacting results throughout the year, highlighting the COVID-19 lockdown in China as a cause of further uncertainty for production and market development.
($1 = 0.9391 euros)
(Reporting by Victoria Waldersee, Editing by Miranda Murray)
