MBGYY Mercedes Benz Group AG (PK)

By David Sachs

Mercedes-Benz Group AG said Friday that its raised outlook for the van segment stems primarily from net pricing increases.

The German luxury car company upgraded the van business's adjusted margin forecast to between 11% and 13% on the year from between 9% and 11% previously, following first-quarter growth, but maintained 2023 guidance for the group as a whole.

Mercedes-Benz's van segment's volume, structure and pricing combined for a boost of 600 million euros ($661.8 million), driven mainly by higher net pricing, Chief Financial Officer Harald Wilhelm said during a call with analysts.

The company expects the vans segment to finish 2023 at the high end of the new margin range, Mr. Wilhelm said. Demand for premium vans was high, suggesting that vans could further improve pricing, he said.

The company also said it now expects revenue from its vans segment to be significantly above the prior-year level on unit sales that are forecast to be slightly above the prior-year level. It had previously guided for vans unit sales to be in line with the 2022 level.

The company doesn't release average sales prices for vans, a spokesman said. The average sales price for cars rose 6% in the first quarter, to EUR76,000, compared to the same reporting period last year, the spokesman said.

Mercedes-Benz will give an update on its vans strategy on May 16.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

April 28, 2023 04:42 ET (08:42 GMT)

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