- Group EBIT outlook raised to 20.5 bln euros
- Q2 EBIT beats Refinitiv forecast at 5 bln euros
- Global economy still subdued, monetary policy to weigh
- Supply chain 'noticeably improved', inventory building up
BERLIN, July 27 (Reuters) - Mercedes-Benz forecast a subdued world economy with monetary policy weighing on consumers but said supply chain issues and energy price pressures were easing, as it raised its group earnings outlook for the full-year.
The premium carmaker said in statements issued on Thursday that inventory was building up as a result of the roll-out of its direct sales model and a ramp-up in production with new models coming onto the market.
The supply chain was "noticeably improved", Mercedes-Benz said, in contrast to Porsche which said in results on Wednesday it was struggling weekly with supply chain problems particularly on key components for EVs.
Still, the outlook for the Mercedes-Benz cars segment of 12%-14% returns on unit sales and revenue at prior level remained unchanged, but property, plant and equipment as well as research and development expenditures will rise, the company said.
Mercedes-Benz had set a cautious tone at the beginning of the year on warnings of a sluggish economy but was slightly more optimistic in April as the U.S. and China saw signs of recovery.
Full-year earnings before interest and tax (EBIT) are now expected to be on par with the 20.5 billion euros ($22.7 billion) made in 2022, it said on Thursday, having previously expected a slight decline.
Mercedes-Benz Vans' outlook for adjusted return on sales was raised to 13% to 15% in 2023, up from 11% to 13% previously forecast, marking the second outlook upgrade in less than three months after a significant increase in sales in the second quarter.
This month, the company reported 6% growth in its second-quarter vehicle sales as a result of high demand for all-electric and top-end vehicles, posting growth in Europe, Asia and North America.
Reporting by Victoria Waldersee; Editing by Miranda Murray and Miral Fahmy
Source: Reuters