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BERLIN: Mercedes-Benz raised its forecast for adjusted return on sales for the full year for its cars division to 13-15% from 12-14% as third-quarter earnings rose to 5.2 billion euros ($5.18 billion), the company said on Wednesday.

It now expects full-year earnings for the group to be “significantly above” last year’s levels, it said, translating into an increase of at least 15%.

Group revenue in the third quarter was up by a fifth to 37.7 billion euros, with adjusted returns of 14.5% for the cars division and 12.7% at Mercedes-Benz Vans.

Mercedes-Benz Vans now expects returns of 9-11% from 8-10% previously after seeing sales rise to 104,000 vehicles in the third quarter from 88,000 last year, with electric van sales up by a third this year so far.

Mercedes-Benz and Microsoft collaborate on supply chain data platform

Top-end luxury sales lifted revenues, making up 15% of overall cars sales in the third quarter.

The luxury vehicle maker, which saw sales rise by a fifth in the third quarter bolstered by loosened coronavirus restrictions in China, cautioned that high inflationary pressure and ongoing supply chain bottlenecks made the outlook more difficult.

Still, it expected slightly higher sales in the fourth quarter than last year, Wednesday’s statement said.

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