Mercedes-Benz Group claimed it “achieved solid second quarter results” despite earnings before interest and taxes (EBIT) down 20% year on year to EUR4bn (Q2 2023: EUR5bn) “supported by operational efficiency and a focus on healthy sales of cars and vans in a challenging environment”.
Adjusted return on sales (RoS) at Mercedes-Benz Cars was down to 10.2% from 13.5% but up to 17.5% from 15.5% at Vans. Group revenue fell to EUR36.7bn from EUR38.2bn in the quarter.
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“Sales and the model mix are expected to improve in the second half of the year, supported by further market launches of new models particularly in the top end segment,” said Ola Kaellenius, CEO.
Adjusted EBIT at Mercedes-Benz Cars fell EUR1bn to EUR2.8bn though adjusted RoS of 10.2% was up from 9% in the first quarter”, (Q2 2023: 13.5%) “due to a focus on sales quality in a challenging environment and due to favourable material costs”.
Unit sales rose 7% quarter on quarter to 496,712 units due to improved product availability in China and the US.
Adjusted RoS for Vans rose to 17.5% from 15.5% a year ago with lower unit sales (103,435 versus 119,505) “were “outweighed by healthy net pricing, and a favourable structure, as well as favourable material costs and positive foreign exchange effects”.
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By GlobalDataAdjusted EBIT increased 5% to EUR834m with Q2 affected by model changes and a phased launch of the electric eSprinter.
Looking ahead, the automaker said: “The economic situation and automotive markets continue to be characterised by a degree of uncertainty.” In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business development of Mercedes-Benz Group may arise from geopolitical events and trade policy.”
It saw car unit volume at the 2023 level with overall sales expected to rise in the second half of 2024, driven by full availability of new E-Class and GLC models and an increase for what it terms ‘top end’ models.
In Europe, “overall sentiment” was “improving” but the China view is “cautious” on the “macroeconomic sentiment and fierce competition in the entry segment and to a certain extent in the core segment.
In the United States, “solid momentum” was seen for sales and demand with second half 2024 driven by GLC sales.
Electric share was pegged at 19%-20% with sales of plug-in hybrids expected to increase in the second half, driven by SUVs and the full E-Class availability.
Adjusted cars RoS guidance is now seen in the narrower 10%-11% range (from 10%-12%).
The automaker expects an increase in sales volume and an improved model mix in the second half and “seeks to hold and defend pricing at current levels”.
Vans has raised its adjusted Return on Sales (RoS) guidance to 14%-15% (12%-14%) “given continued healthy net pricing and favourable structure supported by comprehensive cost reductions”.
Market demand was expected to soften in H2 with EV share now seen at 5%-7%.
Overall group revenue was expected to be flat with cars, vans and finance division revenue forecasts unchanged.
Group EBIT was expected to be slightly lower with the guidance raise for vans balancing out mobility (finance).
