The German automotive giant Mercedes-Benz Group, formerly known as Daimler, reported strong preliminary financial results for the year 2021, exceeding its own expectations.

Mercedes-Benz Cars & Vans segment now expects full-year adjusted EBIT of around €14 billion ($15.9 billion) and an adjusted return on sales of 12.7% in the full year, exceeding the guidance range of 10 to 12%.

In the fourth quarter, Mercedes-Benz Cars & Vans’ adjusted return on sales was 15%, despite the ongoing semiconductor shortages, driven by solid net pricing, good product mix and favourable used car performance.

Mercedes-Benz Mobility’s adjusted EBIT is around €3.4 billion and an adjusted Return on Equity or RoE of approximately 22%, compared to guidance of 20% to 22%.

Industrial Free Cash Flow in the new group structure, including segment Daimler Trucks & Buses until December 9, is now expected at prior year level, around €8.5 billion, while guidance was slightly below the previous year.

The company previously said it expects to have considerable positive effects on Group EBIT in the fourth quarter from deconsolidation due to the spin-off of the Daimler commercial vehicle business.

This effect on Group EBIT is now expected to be around €9 billion to €10 billion euros.

The Annual Report 2021 will be disclosed on March 11.

In Germany, Mercedes shares were trading at €71.34, up 2.28%.