Mercedes, 2023 earnings falling. «Most costly electrical automobiles for years» | EUROtoday

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Mercedes-Benz closed 2023 with a internet revenue of 14.53 billion euros, lowering by 1.9% in comparison with 2022. Revenues as an alternative rose by 2.1% to 153.318 billion euros. L'Ebit dropped by 3.9% to 19.66 billion euros, with the adjusted Ebit which stood at 20.004 billion (-3.2%). The free money circulation of the commercial enterprise reached 11.3 billion euros (+39.2% from 8.1 billion euros in 2022), primarily because of the nonetheless excessive profitability, the excessive liquidity conversion price and the decrease working capital. There internet liquidity of the commercial sector rose to 31.7 billion euros (from 26.6 billion on the finish of 2022). The EPS stood at 13.46 euros (-0.7%).

Dividend up and buybacks as much as 3 billion

Regarding the fourth quarter of 2023, Mercedes-Benz Group recorded revenues lowering by 1.8% to 40.261 billion euros, an Ebit of 4.326 billion (-20.1%) and a internet revenue of three.16 billion (-21.5%), with EPS of two.99 euros (-19.7%).

All’shareholders' assembly on May eighth, the board of administrators will suggest the distribution of a dividend of 5.30 euros per share (up from 5.20 euros final 12 months). Furthermore, the group publicizes an additional share buyback program for a most worth of three billion euros. For 2024, group revenues are anticipated to be on the 2023 degree, group Ebit is predicted to be barely beneath the 2023 degree and Industrial Sector Free Cash Flow can be anticipated to be barely beneath the 2023 degree.

Decreasing demand for automobiles on faucet

During its annual convention in Stuttgart, Mercedes-Benz warned that i Electric autos will stay costlier of their “cousins” with inner combustion engines for a very long time to return, whereas the posh automobile producer is making ready for a cooling within the demand for automobiles on faucet, concentrated above all within the medium-small segments, the place the three-pointed star just isn’t so current.

The German premium carmaker really forecast a discount in earnings this 12 months, citing challenges posed by the slowing financial system. This is an “exceptional” uncertainty brought on by conflicts within the Middle East and Ukraine and by tensions between China and the United States. Supply chain bottlenecks for vital elements stay “a significant risk factor”, whereas the potential for an “even more pronounced” slowdown in financial progress might affect automotive markets.