[ad_1]
MERCEDES-BENZ Group plans to buy back as much as three billion euros (S$4.4 billion) worth of stock, extending moves to reward shareholders after cash flow exceeded expectations.
The German luxury car maker said the new buyback will begin immediately after the conclusion of an ongoing programme, worth four billion euros. That repurchase – at the time the first in 15 years – was unveiled about a year ago.
Carmakers have returned more money to shareholders in recent months after benefiting from pent-up demand after years of supply-chain disruptions. General Motors, Ford and Stellantis spent a combined US$22.7 billion buying back shares and paying dividends last year, while Renault last week proposed its biggest shareholder payout in five years.
Mercedes’ American depositary receipts rose 3.3 per cent after the new round of repurchases was announced late Wednesday (Feb 21). The company reported better-than-expected preliminary industrial free cash flow earlier this month, raising some expectations for an extension to its share buyback programme.
Like its peers, Mercedes long benefited from a well-filled order book that helped offset some of the economic headwinds affecting the automotive industry. Sales are expected to normalise this year as higher living and borrowing costs weigh on consumption. The manufacturer also is contending with waning enthusiasm for electric vehicles in Europe and pressure from Tesla’s frequent price cuts.
The company is due to provide a full earnings report on Thursday. BLOOMBERG
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
[ad_2]
Source link
