Mercedes-Benz reports growing revenue in Q1 despite less cars sold

BERLIN, April 27– Revenue of the Mercedes-Benz Group grew by 6 percent year-on-year and reached 34.9 billion euros in the first quarter of this year although vehicle sales declined, the German carmaker said on Wednesday. Despite the ongoing pandemic, global chip shortages and the Russia- Ukraine conflict, earnings before interest and taxes of the carmaker rose…

BERLIN, April 27 (Xinhua) — Revenue of the Mercedes-Benz Group grew by 6 percent year-on-year and reached 34.9 billion euros (37 billion U.S. dollars) in the first quarter (Q1) of this year although vehicle sales declined, the German carmaker said on Wednesday.

Despite the ongoing pandemic, global chip shortages and the Russia-Ukraine conflict, earnings before interest and taxes (EBIT) of the carmaker rose by 11 percent year-on-year to 5.2 billion euros. Global sales of Mercedes-Benz cars fell 10 percent to 487,008 units.

The EBIT figure included 918 million euros from the sale of branches and shareholdings. On the other hand, there were expenses of 709 million euros resulting from the “adjustment of industrial operations in Russia”.

Delivery problems with cable harnesses from Ukraine as well as the chip shortages caused Mercedes-Benz to curtail production temporarily in recent months.

For fiscal 2022, Mercedes-Benz expects revenue to rise slightly and EBIT to remain at the prior-year level. The situation in Russia and Ukraine could possibly have substantial negative consequences for its business activities, “should it escalate beyond the current state”, the carmaker warned. (1 euro = 1.06 U.S. dollars) Enditem

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