Mercedes-Benz Expects Lower Earnings This Year But Lifts Dividend
By David Sachs
Mercedes-Benz Group raised its dividend but said it expects earnings this year to decline following lower sales and net profit in the fourth quarter of last year.
The German luxury-car maker said Thursday that net profit slipped 21.5% on year to 3.16 billion euros ($3.42 billion). Analysts expected net profit to finish the quarter at EUR2.80 billion, according to Visible Alpha.
Group revenue ticked down 1.8% to EUR40.26 billion after fewer cars and vans were sold. Analysts had forecast sales of EUR39.15 billion, according to Visible Alpha.
Mercedes hiked its dividend to EUR5.30 a share from EUR5.20 for 2022. Late Wednesday, the carmaker committed to share buybacks of up to EUR3 billion, expanding on a EUR4 billion program launched last year.
Looking ahead, Mercedes forecasts 2024 group EBIT slightly below last year's levels on stable revenue expectations. The firm expects an adjusted EBIT margin of 10%-12% in its cars division and 12%-14% for vans. Industrial free cash flow is expected to finish 2024 at slightly below last year's level of EUR11.3 billion, the company said.
"The economic situation and automotive markets continue to be characterized by an exceptional degree of uncertainty," Mercedes said. "Unexpected developments may arise in particular from geopolitical events and trade policy."
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
February 22, 2024 02:07 ET (07:07 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Markets Brief: AI Leaders Excel In Earnings Season So Far
-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
SoFi Earnings: Revenue Growth Slows on Lower Loan Growth and Higher Credit Costs
-
Tesla: Full Self-Driving Approval In China Supports Our View for Deliveries Growth In 2024
-
Philips Earnings: Firm Reaches $1.1 Billion Settlement Agreement
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast