German carmaker Mercedes-Benz reported its results for the third quarter of this year. Thanks to the high demand for more expensive models, the carmaker achieved very good results.
Harald Wilhelm, who is a member of the Board of Management of Mercedes-Benz Group AG. said of the results.
“Mercedes-Benz once again delivered solid results thanks to the robust demand for our desirable products. In combination with our ongoing financial discipline, we are making the company more resilient and setting the pace for the months ahead, as we continue accelerating our transformation.”
So what were the results in numbers?
The company achieved revenue of €37.7 billion, up 19% year-on-year, compared to €31.6 billion in Q3 2021.
Earnings before interest (EBIT) was €5.2 billion, an 83% year-on-year increase from 3Q 2021 when the company reported €2.8 billion.
Net profit was €4 billion compared to €2.6 billion in the same quarter of 2021.
Car sales were up 38.3% to 530,400 vehicles, a very interesting number considering the current global economic situation.
At the same time, the outlook for future profits has been raised, with the company still struggling with higher demand than the number of cars it can offer. This is great news for all investors.
How is the carmaker affected by the current situation?
One of the big issues for the carmaker may be the lack of gas during the winter season. Recently, the automaker announced that they are stockpiling parts for this reason.
There is also the problem of record inflation, which entails ever-increasing interest rates. This is adversely affecting the automaker, especially in Europe and the US. Mercedes has therefore lowered its sales estimates in these markets.
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Weaker sales in the US and Europe should be offset by significantly higher sales in China, where tax breaks are boosting demand. Overall, Mercedes-Benz expects a slight increase in global car sales. Rival carmaker Volkswagen is also relying on the Chinese state, as we reported in a recent article.
Investors, however, have taken these good results and positive outlook rather neutrally and the stock is only up slightly over 1%.