Mercedes-Benz beat analysts' estimates with annual earnings of €20.5bn (R396.9bn) and stronger revenue, the premium carmaker said on Friday, but warned of lower earnings this year due to economic uncertainty.
The carmaker, one of the few German companies to stick to its 2022 targets and raise its profit forecast last October despite the unstable environment, hit its forecast of a 13%-15% adjusted return on sales in the cars division, reporting a 14.6% margin.
The company forecast a lower adjusted return of 12%-14% on sales for the cars division in 2023 and group earnings slightly below 2022, even with Mercedes-Benz cars unit sales expected at the same level.
Mercedes-Benz said it will also propose a dividend of €5.20 per share, up from €5 last year, amounting to a total payout of €5.6bn.
Incoming orders were sluggish in Europe and sales in the Chinese market were tepid due to the Covid-19 restrictions in the fourth quarter, the company said, adding demand in the US was still strong.
Top-end vehicle sales, which saw particularly strong growth in 2022 and helped the carmaker overcome rising costs, are expected to rise slightly this year.
The company's fourth-quarter earnings came in at €5.4bn, above estimates of analysts polled by Refinitiv of €5bn.
The company, which committed on Thursday to buy back up to €4bn in shares by 2025, reported an adjusted free-cash flow in its industrial business of €9.29bn, down 8% from last year.
Mercedes-Benz flags market uncertainty despite 2022 earnings boost
Mercedes-Benz beat analysts' estimates with annual earnings of €20.5bn (R396.9bn) and stronger revenue, the premium carmaker said on Friday, but warned of lower earnings this year due to economic uncertainty.
The carmaker, one of the few German companies to stick to its 2022 targets and raise its profit forecast last October despite the unstable environment, hit its forecast of a 13%-15% adjusted return on sales in the cars division, reporting a 14.6% margin.
The company forecast a lower adjusted return of 12%-14% on sales for the cars division in 2023 and group earnings slightly below 2022, even with Mercedes-Benz cars unit sales expected at the same level.
Mercedes-Benz said it will also propose a dividend of €5.20 per share, up from €5 last year, amounting to a total payout of €5.6bn.
Incoming orders were sluggish in Europe and sales in the Chinese market were tepid due to the Covid-19 restrictions in the fourth quarter, the company said, adding demand in the US was still strong.
Top-end vehicle sales, which saw particularly strong growth in 2022 and helped the carmaker overcome rising costs, are expected to rise slightly this year.
The company's fourth-quarter earnings came in at €5.4bn, above estimates of analysts polled by Refinitiv of €5bn.
The company, which committed on Thursday to buy back up to €4bn in shares by 2025, reported an adjusted free-cash flow in its industrial business of €9.29bn, down 8% from last year.
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