The German luxury carmaker Mercedes-Benz revealed that its profits had increased despite a drop in sales in the second quarter of this year, Trend reports citing Xinhua.
The revenue of the group, which includes Mercedes-Benz cars, Mercedes-Benz Vans and Mercedes-Benz Mobility, rose by 7 percent to 36.4 billion euros. Meanwhile, adjusted earnings before interest and taxes (EBIT) went up by 8 percent to 4.9 billion euros, the company announced.
The "strong financial results" are mainly attributed to cost reduction, which helped to offset lower sales and higher costs, said the company.
Sales of Mercedes-Benz cars slid to 487,100 units in the second quarter, down from 521,200 units in the same period last year.
However, the company explained: "Net pricing improved and the product mix remained favorable, helping to lift revenue by 8 percent, the adjusted EBIT by 20 percent, and the adjusted Return on Sales to 14.2 percent, despite a 7 percent drop in sales."
Semiconductor supply bottlenecks, as well as logistical challenges have prevented the company from meeting strong market demand.
"We are enhancing our vigilance and resilience to manage increasingly complex macroeconomic and geopolitical challenges. At the same time, we have good reasons to remain confident, with ongoing strong demand, a fresh vehicle portfolio and further key product launches this year," said Ola Kaellenius, Chairman of the Group's Board of Management.
The company also confirmed its commitment to "an all-electric future."