Mercedes-Benz Earnings: Revenue and Profits Rise as Chip Shortage Lessens, but Headwinds Remain

Mercedes-Benz reported second-quarter earnings per share of EUR 3.34, EUR 0.18 better than the EUR 3.16 FactSet consensus and up EUR 0.43 from EUR 2.91 last year. With improved chip availability, albeit still disrupting output, consolidated volume increased 5% to 484,000 units from 463,000. Group revenue rose 7% to EUR 38.2 billion from EUR 36.4 billion a year ago, 1% shy of consensus. Price and mix were positives as the firm focuses on top-end luxury expansion. Second-quarter group adjusted EBIT was EUR 5.2 billion for a 13.6% margin versus EUR 4.9 billion and a 13.6% margin last year, beating consensus of EUR 4.9 billion by 6%. Industrial margin was supported by volume, price, and mix but partially offset by inflationary cost pressure and increased research and development while higher interest rates dented the financial-services margin.