Mercedes-Benz Group has announced a positive outlook for its annual performance based on strong financial results for the second quarter. The German luxury car maker now anticipates industrial free cash flow to surpass last year’s figures, contrary to earlier projections of a flat performance. Additionally, the company expects earnings before interest and taxes to remain on par with last year’s results, which is an improvement from the previous forecast of a slight decline.
Mercedes-Benz’s van business is also poised for growth, with the adjusted return on sales expected to reach 13% to 15%. This is a significant increase from the previous forecast of 11% to 13% growth. The company attributes this positive trend to higher prices and robust unit sales, resulting in an adjusted return on sales that has exceeded market consensus. Furthermore, its earnings before interest and taxes have surpassed expectations.
In summary, Mercedes-Benz Group’s strong financial performance in the second quarter has led to an upward revision of its annual guidance. The company’s revised forecasts paint an optimistic picture for its industrial free cash flow and earnings before interest and taxes. With the van business also showing promising growth potential, Mercedes-Benz is well-positioned for success in the luxury car market.