Mercedes-Benz beats profit forecast as electric vehicle sales rise

A Mercedes-Benz logo is seen outside a Mercedes-Benz car dealership, amid the coronavirus disease (COVID-19) outbreak in Brussels, Belgium May 28, 2020. REUTERS/Yves Herman

BERLIN, Feb 11 (Reuters) – Mercedes-Benz Cars & Vans (DAIGn.DE) expects adjusted EBIT of 14 billion euros ($15.94 billion) in 2021, it said in preliminary results released on Friday, as it focuses on higher sales. promoting electric vehicles.

The luxury automaker forecast an adjusted sales return of 12.7% for the full year, beating its own forecast by 10-12%, with higher electric vehicle sales offsetting supply chain issues. supply.

Its share price rose to 71.12 euros at 08:59 GMT, against 69.01 euros at the opening of the markets.

Data released by Mercedes-Benz last month showed sales of battery electric vehicles rose more than 90% in 2021 even as total sales fell 5%, with the automaker prioritizing passenger cars. greater value in the face of semiconductor shortages.

Its CEO, Ola Kaellenius, has repeatedly said the automaker’s goal is to increase profitability rather than focus exclusively on unit sales, as the company strives to increase its valuation by stock market after parting ways with Daimler Truck (DTGGe.DE) in December last year. .

“Our strong results are the result of highly sought-after products and a focus on profitable growth and cost discipline,” Kaellenius said in a statement.

The fourth quarter saw an adjusted sales return of 15%, the company said on Friday, with profitability boosted by “strong net pricing, a good product mix and favorable used-car performance.”

Mercedes-Benz expects the deconsolidation of Daimler Truck to boost its EBIT by 9 to 10 billion euros.

Mercedes-Benz is due to release its annual results on February 24.

($1 = 0.8783 euros)

Reporting by Victoria Waldersee Editing by Paul Carrel and Elaine Hardcastle

Our standards: The Thomson Reuters Trust Principles.