Electric, high-end cars rose Mercedes-Benz’s earnings

Due to supply chain constraints, Mercedes-Benz (MBGn.DE) reported an annual adjusted return on sales of 12.7 percent for 2021, with income from top models increasing by 30 percent. The manufacturer focused on high-end and electric vehicles in the face of these challenges.

While unit sales fell 5 percent, the Mercedes-Benz Cars & Vans company more than doubled its annual adjusted earnings before interest and taxes (EBIT), increasing to 13.9 billion euros ($15.61 billion) from 6.8 billion euros in the previous year, from 6.8 billion euros the year before.

In response to supply chain bottlenecks, Mercedes-Benz anticipates revenue to increase modestly this year compared to 2021, the luxury carmaker said. However, the company cautioned that it was too early for a conclusion to the semiconductor shortfall to be predicted.

The luxury automobile manufacturer expected that sales of its top-of-the-line vehicles would increase by 10% in 2022, and stated that it was expanding its connection with chip manufacturers in order to obtain greater visibility into the supply chain.

“In addition to our focus on cost savings and supply chain management, we have three strategic targets that stand out: scaling our electric offensive, speeding our car software ambitions, and expanding our luxury business,” said Ola Kaellenius, the company’s chief executive officer.

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