Mercedes-Benz Q2 Results Impress Despite Headwinds, Raises Guidance; Slight FVE Increase to EUR 92

Mercedes-Benz Group reported second-quarter earnings per share of EUR 2.91, EUR 0.08 better than the FactSet consensus and up EUR 0.07 from a year ago. Due to the Ukraine crisis, chip shortage, and China COVID-19 lockdown, total volume dipped 5% to 587,000 units from 620,000. Despite the volume decline, consolidated revenue increased 7% to EUR 36.4 billion from EUR 34.1 billion in the prior year. Price and mix were major contributors as the firm allocated chips to higher margin vehicles and focused on top-end luxury segment expansion. Second quarter group adjusted EBIT was EUR 4.9 billion for a very healthy 13.6% margin versus EUR 4.6 billion and a 13.4% margin last year, showing an impressive 20 basis point expansion despite lower volume and higher input costs.