Volkswagen:Quarterly Results/2024 Q2: Difference between revisions

Volkswagen:Quarterly Results/2024 Q2 (view source)

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 * Mercedes lowered its outlook for 2024 cars adjusted return on sales to a range of between 10% and 11% from 10-12% due to ramp-up costs for charging infrastructure and tough market conditions in China..
-* It raised its outlook for 2024 vans adjusted return on sales to a range of 14%-15% from 12-14% initially due to favorable pricing and cost reductions during the quarter.
+* It '''raised its outlook for 2024 vans''' adjusted return on sales to a range of 14%-15% from 12-14% initially due to favorable pricing and cost reductions during the quarter.
 * Mercedes reiterated its 2024 overall group guidance for revenue, EBIT and Group free cash flow.
 * The car maker expects a better second half. ''Sales and the model mix are expected to improve in the second half of the year, supported by further market launches of new models particularly in the Top-End segment," it said in a statement.''
+* The group now expects new business volume at its mobility business to be slightly below the prior year level. In March, they expected it to be at the prior-year level.
+* '''Mercedes-Benz noted in the earnings call that it witnessed softer-pricing in Q2 and that used car business continued to soften.''' ''"The ASP is at €71,000 due to a lighter mix and softer pricing," CFO Harald Wilhelm said. "On the return on sales adjusted in the second quarter of 10.2%. How did we get there? In essence, I mean, the bucket volume structure net pricing driven -- is driven by lower volumes, mix impact outlined by Ola before due to the lighter Top-End share and the negative pricing versus a very high level of pricing in the second quarter 2023. Additionally, the used car business normalized as we anticipated, and we also invested further into the product enhancement to keep them at the cutting edge."''
+* '''They, however, noted that pricing for ICEs is still solid'''. ''"Adjusted return on sales cars guidance is narrowed to 10% to 11%. What do we expect in the second half of the year? Volumes are expected to increase in the second half with full availability of the products. The mix is expected to improve, thanks to Top-End launches. The pricing we want to hold and defend on current levels. The ICE pricing is solid. The EV pricing is at the same time competitive," CFO Harald Wilhelm pointed out..."Additionally, we see normalization of the used business, but still an overall healthy level.''
+* Mercedes said its mobility business is facing a challenging environment at the moment. ''"Our mobility division is feeling a challenging environment at the moment," CEO Ola Kallenius said. "On mobility, H1 was challenging with regards to the margin and the cost of credit risk. In H1, the new acquisitions improved, but this takes -- the margin in the acquisition improved, but this takes time beyond the H2 to materialize due to the demanding market environment and higher for longer interest rate development," CFO Harald Wilhelm pointed out.''
 {| class="wikitable"
@@ Line 113: / Line 117: @@
 !Analysts estimate<ref>https://www.smartkarma.com/home/newswire/earnings-alerts/mercedes-benz-group-mbg-earnings-fy-return-on-sales-narrowed-q2-results-mixed/</ref>
 |-
-|Revenue
+|Group revenue
 |EU36.74 billion
 | -3.9%
 |EU37.22 billion
 |-
-|EBIT
+|Group EBIT
 |EU4.04 billion
 | -19%
@@ Line 132: / Line 136: @@
 |
 |15.4%
+|-
+|Mercedes-Benz Mobility (Financial services) revenue
+|EU6.35 billion
+| -2.4% (Q1 2024: +3.3%)
+|EU6.38 billion
+|-
+|Mercedes-Benz Mobility (Financial services) adjusted EBIT
+|EU271 million
+| -39.5% (Q1 2024: -48.2%)
+|
+|-
+|Mercedes-Benz Mobility (Financial services) contract volume
+|135,747
+|3.3%
+|
+|-
+|Mercedes-Benz Mobility (Financial services)  new financing contracts
+|303,700
+| -15%
+|
 |}
@@ Line 143: / Line 167: @@
 * Volume effect contributed -4.7 points to revenue growth rate.
 * Its operating margin stood at 8.1%  (analysts estimate: 7.9%<ref>https://www.smartkarma.com/home/newswire/earnings-alerts/renault-sa-rno-earnings-1h-operating-margin-surpasses-estimates-with-8-1-increase/</ref>) in H1 2024 (H1 2023: 7.6%) boosted by pricing and exchange rate effects.
+* Revenue in its mobility financial services were up by 30.4% to EUR1.3 billion in Q2 (financing contracts grew by 2.1% while used car financing were down by 10.4% in H1) while operating profit rose by 14.5% to EUR593 million in H1.
+* In the earnings call, CEO Luca de Meo (who is also the president of ACEA) '''called for coordinated support from European regulators to ensure the industry meets the 2025 emission targets''', ''"The EV market is currently stuck at 15%, and to meet the 2025 targets, we need to be above 20%. Renault is well-positioned with a high mix of hybrids and new EV products. However, the industry as a whole may struggle to meet these targets without more flexibility or coordinated support from regulators," he said. "Flexibility in regulations, similar to what was done in 2020, could help the industry meet these ambitious targets without incurring significant fines."''<ref name=":1">https://www.gurufocus.com/news/2483536/renault-sa-rnlsy-q2-2024-earnings-call-transcript-highlights-record-operating-margin-and-strategic-advancements?r=4bf001661e6fdd88d0cd7a5659ff9748</ref>
+* '''CEO Luca de Meo said there is increased pressure on pricing.''' ''"While there is pressure on pricing, we use cost savings to offer competitive products without sacrificing margins. Our high utilization rates and strong order book support this strategy", he said''<ref name=":1" />''.''
+* '''Renault expects continued strong performance in the light commercial vehicle (LCV) segment'''<ref name=":1" />'''.'''
 == References ==