Mercedes-Benz Earnings: Margin Dinged by Input Costs and Interest Rates but Still Impressive

Mercedes-Benz Group reported first-quarter earnings per share of EUR 3.69, EUR 0.53 better than the EUR 3.16 FactSet consensus and up EUR 0.43 from EUR 3.26 per share last year. With improved chip availability versus first-quarter 2022, albeit still disrupting output, total volume increased 5% to 602,000 units from 576,000. Group revenue rose 8% to EUR 37.5 billion from EUR 34.9 billion a year ago, beating the consensus by EUR 125 million. Price and mix were major contributors as the firm focuses on top-end luxury expansion. First-quarter group adjusted EBIT was EUR 5.4 billion for a 14.5% margin versus EUR 5.3 billion and a 15.2% margin last year. Car and van segment margin was dinged by inflationary cost pressure and increased R&D spending, while higher interest rates dented financial services margin. Despite lower year-over-year margin, adjusted EBIT still beat consensus by 12%.