Mercedes-Benz Group (MBG.DE) reported higher revenue and adjusted earnings before interest and taxes (EBIT) for the second quarter compared to last year, despite the effects of “semiconductor bottlenecks and supply-chain disruptions.”
The supply disruptions led to a 7% drop in sales, Mercedes said, but revenue still rose 8% from a year ago, and adjusted EBIT spiked 20%. Better pricing and margins boosted both for Mercedes.
The German automaker also upped its guidance for the year, now seeing revenue for 2022 to be “significantly above” last year’s level, up from a previously expected “slightly above.” EBIT is now seen “slightly above” 2021, rather than “at the prior-year level.”
Despite the headwinds the automaker faced in the U.S. market, it was still able to deliver for its customers after a rough Q1.
“I would say that the semiconductor crunch is continuing also in 2022, but what we could observe in the second-quarter was a more stable supply,” Mercedes Benz USA CEO Dimitris Psillakis said in an interview with Yahoo Finance. “So that helps us stabilize our supply to our dealers and supply to the market, which gave us a better Q2 than Q1 earlier this year.”
From a demand perspective, globally the brand says it continues to see “healthy and high quality” demand in all core markets, and that its order books are solidly filled, with demand seen as higher than supply through the course of the year.
Mercedes USA is also seeing that trend. “We see the demand being pretty high, especially in the segment that we’re operating, the premium segment, the luxury segments,” Psillakis says. “We see the demand staying and remaining high despite inflation or the weakening economy.”
While U.S. customers are focused on buying Mercedes’ top end or higher end models, meaning V8 powered cars and SUVs, Psillakis says there is growing demand for its electric offerings as well. Mercedes intends to go fully electric by 2030.
“I would say it’s high,” Psillakis says about consumer appetite for EVs. “We launched the EQS, our electric vehicle sedan, at the end of last year. We have had a great seven month run with over 4,000 units being sold to US customers.”
For SUV and crossover focused customers in the U.S., that also means higher interest in electrified versions of those vehicles as well.
“And the demand already for our EQS SUV, as I said is coming September, it’s pretty high,” Psillakis says. “Maybe that’s also supported a little bit by the high gasoline prices making the electric vehicles much more competitive I would say at the moment, from a consumption point of view.”
Despite Mercedes buyers traditionally being in the upper income brackets, it seems higher gas prices might be weighing on their minds as well.
As for future electric models, Mercedes smaller EQB SUV will be arriving showrooms later this summer, with the EQE mid-size sedan on sale late this fall.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Tech stocks have been under pressure this year, and some strategists don't expect the sector to bounce back anytime soon as interest rates rise.
Hilton has a blowout second quarter…and a new partner with a familiar last name.
Ford reported second quarter financial results after the bell on Wednesday easily topping estimates on both the top and bottom lines, and reaffirming its full-year profit guidance.
(Bloomberg) — The Senate panel that oversees defense spending made deep cuts to the US Army’s fiscal 2023 procurement request for Microsoft Corp.’s combat goggle system, citing unresolved technical concerns.Most Read from BloombergRockstar Games Cleaned Up Its Frat-Boy Culture — and Grand Theft Auto, TooUS Economy Shrinks for a Second Quarter, Fueling Recession FearsBiden, Xi Plan In-Person Meet as Taiwan Tensions IntensifyThe Strong Dollar Is Wreaking Havoc Globally — And It’s Just Getting Sta
ServiceNow CEO Bill McDermott joins Yahoo Finance Live to discuss company earnings, investing for the future, hiring amid rising inflation, enterprise software subscriptions, productivity, and the outlook for company growth.
As it works to chew into a backlog that now stands at $5.8 billion, Textron Aviation will continue to ramp up aircraft production rates and hire new workers in Wichita. In a bullish outlook for its local aviation division, Textron Inc. (NYSE: TXT) CEO Scott Donnelly said Thursday that demand for the company’s products will keep the increases coming in the Air Capital. “We expect to continue to ramp up production,” Donnelly said on a conference call with investment analysts following the company’s second-quarter earnings report.
Amazon shares are moving higher after the retail giant posted a second-quarter revenue beat.
Slaying the inflation dragon isn't done with baby steps. Expect much higher interest rates as a headwind for equities.
Yahoo Finance Live anchor Seana Smith highlights five trending stock tickers to watch in after-hours trading.
With Tesla (NASDAQ: TSLA) as the only established industry leader, there is still a great opportunity for start-up electric vehicle (EV) makers to ultimately dominate the market. As of now, Nio (NYSE: NIO) and Rivian (NASDAQ: RIVN) are ahead of the competition, but all EV companies have faced supply chain challenges as a result of COVID-19. The bear market has also been less than kind to the EV industry; at Tuesday's prices, Nio's stock has dropped almost 70% from its all-time high in January 2021, and other companies are struggling similarly.
What to watch in markets on Thursday, July 28, 2022.
On Novavax's (NVAX) second-quarter earnings call, investors' focus is likely to be on the sales figures of its COVID-19 vaccine.
The real problem with Intel's data-center business might not be the travails of ex-CEO Brian Krzanich, or the inability of CEO Pat Gelsinger to get Intel back on track quickly; it may be the success of AMD.
Ford earnings skyrocketed, defying headwinds. And the auto giant hiked the Ford stock dividend while reaffirming 2022 outlook.
(Bloomberg) — Jack Ma is taking a weeks-long tour in Europe after largely disappearing from public view for almost two years, adding to signs that China’s government is easing pressure on the entrepreneur as he steps back from a business empire that had made him one of the country’s most powerful people.Most Read from BloombergRockstar Games Cleaned Up Its Frat-Boy Culture — and Grand Theft Auto, TooUS Economy Shrinks for a Second Quarter, Fueling Recession FearsBiden, Xi Plan In-Person Meet as
Here’s a good bit of news for retirees in 2022: you can keep more money in your tax-deferred retirement accounts.
In this article, we discuss Cathie Wood’s top 10 buys in July. If you want to see more stocks that Cathie Wood bought this month, click Cathie Wood’s Top 5 Buys in July. In the beginning of July, Cathie Wood of ARK Investment Management admitted that while her predictions about inflation were wrong, the US […]
Wall Street institutions cut price target expectations for both Apple and Amazon ahead of their earnings reports due out later today.
(Bloomberg) — Alibaba Group Holding Ltd. fell for a third straight day as investors assessed the impact of Jack Ma reportedly ceding control of his fintech arm, and as worries over its earnings dragged. Most Read from BloombergRockstar Games Cleaned Up Its Frat-Boy Culture — and Grand Theft Auto, TooUS Economy Shrinks for a Second Quarter, Fueling Recession FearsBiden, Xi Plan In-Person Meet as Taiwan Tensions IntensifyThe Strong Dollar Is Wreaking Havoc Globally — And It’s Just Getting Started
Warnings of a recession have been prevalent for a while now, and while J.P. Morgan’s global markets strategist Marko Kolanovic thinks one could well be on the way, he believes the market is already reflecting that possibility. “While recession odds are increasing,” Kolanovic said, “a mild recession appears already priced in based on the YTD underperformance of Cyclical vs. Defensive equity sectors, the depth of negative earnings revisions that already matches past recession moves, and the shift

source

Lascia un commento

Il tuo indirizzo email non sarà pubblicato. I campi obbligatori sono contrassegnati *