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Electric and high-end cars lift Mercedes-Benz earnings -Breaking

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© Reuters. FILE PHOTO – Mercedes-Benz’s logo can be seen at a Mercedes-Benz dealership, during the COVID-19 (coronavirus disease) epidemic in Brussels, Belgium, May 28, 2020. REUTERS/Yves Herman

BERLIN, (Reuters) -Mercedes-Benz revealed Thursday a 12.7% adjusted annual return on sales, and revenue from top-model models was up by 30%. The carmaker focuses on electric cars, high-end, and electric vehicles in the face of supply chain challenges.

The Mercedes-Benz Cars & Vans division more than doubled its annual adjusted earnings before interest an taxes (EBIT) to 13.9 billion euros ($15.61 billion) from 6.8 billion euros last year even as unit sales fell 5%.

Mercedes-Benz predicts that the company’s revenues will increase slightly this year, compared to 2021. However, it said it is too early to project a resolution to the current semiconductor shortage.

According to the luxury carmaker, sales of top-end models of their cars would increase 10% by 2022. In addition, it increased communication with chip makers in order to have a better understanding of the supply chain.

Ola Kaellenius, chief executive, said that in addition to focusing on supply chain management cost efficiency and supply chains management, there are three key strategic priorities: Scaling our electric offensive, building our luxury business, and accelerating the car software plan.

($1 = 0.8903 euros)

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