April 28, 2023 – Group outlook remains unchanged. Mercedes-Benz Vans adjusted RoS lifted to 11%-13% and at Mercedes-Benz Cars the adjusted RoS is seen at the upper end of 12%–14%.
With regional differences, overall growth momentum of the world economy is likely to remain rather subdued for the rest of the year. High, albeit gradually declining inflation rates in many markets combined with very restrictive monetary policies at major central banks, are likely to continue to weigh on growth. In addition, the recent turbulence in the US and European banking sectors brought new uncertainties for the further development of the global economy. Geopolitical imponderables remain another uncertainty factor. By contrast, energy prices are expected to be less volatile than in the previous year. In addition, global supply bottlenecks are expected to ease further, which should benefit the development of global automotive markets.
Overall demand: In Europe incoming orders remained sluggish in the first quarter. The current order bank supports sales in the coming months. In the United States demand continues to remain on a good level. In China momentum returned post Chinese New Year with strong demand and order intake at the end of Q1.
Unit sales at Mercedes-Benz Cars seen at the prior-year level with revenue remaining at the prior-year level. Adjusted RoS is seen at the upper end of 12%–14% and the adjusted Cash Conversion Rate at 0.8–1.0. Investments in property, plant and equipment are seen significantly above the prior-year level. Research and development expenditures are now seen significantly above the prior-year level mainly due to MB.OS, AMG.EA and MB.EA.
At Mercedes-Benz Vans, unit sales are now seen slightly above the prior-year level. Revenue is seen significantly above the prior-year level and adjusted RoS is now expected in the range of 11%–13%. The adjusted Cash Conversion Rate is expected at 0.6–0.8. Investments in property, plant and equipment are seen significantly above the prior-year level. Research and development expenditures are expected to be significantly above the prior-year level.
New business at Mercedes-Benz Mobility is seen slightly above the prior-year level. Contract volume is now expected at the prior-year level. Revenue is seen slightly below the prior-year level. The adjusted RoE is seen at 12%–14%
The Mercedes-Benz Group expects revenue at the prior-year level and EBIT slightly below the prior-year level. Free cash flow of the industrial business is expected at the prior-year level. CO₂ emissions of the new vehicle fleet in Europe are expected to be significantly below the prior-year level.¹
¹Average CO₂ emissions of the new car fleet of newly registered Mercedes-Benz cars in Europe (European Union, Norway and Iceland) in the reporting year as measured on the basis of the WLTP, i.e. including vans that are registered as passenger cars.
This page was revised based on the Q1 Interim Report 2023 and contains forward-looking statements.