Mercedes-Benz is solid in the third quarter of 2022

China led Mercedes-Benz’s third-quarter earnings, especially in the third quarter of 2022, with net profit doubling to €3.998 billion. All indicators are green, but manufacturers are still cautious about the current situation. The operating margin of Mercedes-Benz’s automotive business reached 14.5% in the third quarter of 2022. In fact, the manufacturer’s sales increased by 19% to 37.716 billion euros. During the same period, net profit doubled (+104%) to €3.998 billion. The group is pleased with the increase in the adjustment margin of its flagship Mercedes-Benz Cars branch, which reached 14.5% in the third quarter. We also raise our margin target for this automotive activity to 13-15% from 12-14% so far. Although all lights are green, the Stuttgart Group is cautious over the coming months given the “extraordinary degree of uncertainty” surrounding macroeconomic and geopolitical conditions. “The further impact of the rapidly changing situation in Russia and Ukraine is unknown and has not yet been reflected in the key figures, but could potentially have significant negative consequences for our business activities,” the group warns. Also read: Mercedes secures lithium supply. He is also concerned about the risk of seeing a decline in demand due to “continuing very high inflationary pressures on consumers and businesses”. “We are seeing the risk of a recession in Europe and we are not denying it, we are taking it seriously,” Harald Wilhelm, director of the Board of Directors, said at a telephonic press conference. “But we have a very large order book in Europe that has to support good demand through 2023,” he said. The recovery of the Chinese market, thanks to public purchasing support after the pandemic has stopped, is the “main” reason for the improvement in sales between July and September 2022. In China alone, the group’s largest market, Mercedes sold 222,600 cars, an increase of nearly 70 percent from last year, when supply was limited due to semiconductor shortages and COVID-19 measures, the statement said. The increase is more modest in Europe, where the group sold 146,100 cars, a 20% increase. The group also notes that good sales of luxury models and sales of electric vehicles have doubled. The German group was convinced that “orders continue to exceed supply and are still limited by semiconductor shortages and logistics bottlenecks.” Raising Margins Like other companies in the automotive sector, Mercedes is benefiting from this increase in demand and a decrease in supply due to logistical problems. In this context, the prices of vehicles sold are rising and automakers are making healthy profits. Mercedes-Benz recalls its goal of saving 50% gas in Germany and ultimately switching from gas to renewable electricity. “We’re on the verge of reducing our gas consumption by 20% right now, and we’re working on it,” said Harald Willhelm. In September, it announced that it had installed a wind farm with a capacity of more than 100 megawatts at the Papenburg site in northern Germany. According to the press release, wind turbines should account for “at least 15% of Mercedes-Benz’s electricity demand in Germany from the mid-10th year”. (with AFP)
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