Mercedes-Benz suffers losses as profit dips to $166.4 billion

Last updated: 2024/02/23 at 3:51 PM

starconnect Published 23 February 2024

22 February 2024, Baden-Württemberg, Stuttgart: Harald Wilhelm (L), Chief Financial Officer of Mercedes-Benz Group AG, and Ola Källenius (R), Chairman of the Board of Management of Mercedes-Benz Group AG, stand in front of a logo of the vehicle manufacturer Mercedes-Benz at the annual press conference. On the right, a new electric G-Class model. Photo: Bernd Weißbrod/dpa

Admin I Friday, Feb. 23, 2024

STUTTGART – German luxury carmaker Mercedes-Benz felt the effects of higher costs in 2023 as a result of inflation and supply chain disruptions.

Revenue increased by 2% over the previous year to €153.2 billion ($166.4 billion), the Stuttgart-based company reported on Thursday.

However, earnings before interest and taxes adjusted for special effects fell by 3% to €20 billion. Consolidated net profit fell by just under 2% to €14.5 billion.
Nevertheless, shareholders are to receive a dividend per share increased by 10 cents to €5.30 euros.

Mercedes had announced on Wednesday a share buyback totalling €3 billion.
The strong growth in Mercedes-Benz’s van unit could not make up for the losses in the passenger car division last year.

The average sales price per car was up an average of 2% to €74,200, and Mercedes had to pay less for raw materials. But inflation and higher costs in the supply chain more than canceled this out.

Looking ahead for fiscal 2024, the carmaker expects group revenue to remain at the prior-year level.

TAGGED: Mercedez-Benz