Frankfurt, April 21, (dpa/GNA) - German luxury carmaker Mercedes-Benz reported an adjusted earnings margin before interest and taxes of 14.8% in the first quarter in its key car division, beating market projections thanks to pricing power and sales.
This was less than in the exceptionally strong period a year ago, when the adjusted return on sales stood at 16.4%. However, analysts had only expected a margin of 13.4% in the first three months of 2023 for the DAX-listed group.
“Strong pricing significantly outweighed headwinds from material costs and led to another quarter of solid financial results at Mercedes-Benz,” chief financial officer Harald Wilhelm said in the preliminary earnings statement issued late Thursday.
In the van business, the margin increased significantly compared to the previous year’s figure and also exceeded market expectations. Before interest and taxes, Mercedes earned €5.5 billion ($6 billion), marking an about 5% increase.
In the statement, Mercedes spoke of healthy net pricing in the car business, higher sales and a good product mix. However, it said material costs had also risen, as well as higher research and development expenses.
Mercedes sold 503,500 cars in the first quarter, an increase of about 3% over the previous year, with above-average growth in high-yield models. The company continued to record high growth rates for electric vehicle sales.
GNA