Premium models such as the S-Class bring Mercedes record profits.
(Photo: Reuters)
Frankfurt The carmaker Mercedes-Benz increased profits again in the first quarter despite a drop in sales. Adjusted operating profit rose by 19 percent to 5.3 billion euros compared to the high level of the previous year, as the Dax group announced on Wednesday.
The turnover of the group, which has been separated from the truck subsidiary Daimler since the end of 2021, rose on a comparable basis by six percent to 34.9 billion euros. The return on sales of the main division Mercedes-Benz Cars rose to 16.4 percent and thus exceeded market expectations.
The shortage of semiconductors that has persisted since last year slowed production at the start of the year. In addition, the war in the Ukraine led to delivery failures for cable harnesses manufactured there. The car sales of the brand with the star fell by ten percent from January to March, but highly profitable top models such as the S-Class luxury sedan sold even better. Improved price enforcement and sustained cost discipline enabled a strong result despite strong headwinds, explained CFO Harald Wilhelm.