FRANKFURT (dpa-AFX) - Mercedes-Benz shares received further tailwind on Friday from a preliminary cash flow report in a persistently good industry environment. In the morning, the share price rose by three percent to 64.96 euros after the key data had been presented the previous evening after the close of trading. The car manufacturer surprised with a high inflow of free cash.

With this increase, the share price is approaching its December high of 65.32 euros. The good run of the past few days is thus continuing: the shares have already gained around ten percent since their January low. Friday was the sixth consecutive day of gains. The automotive sector as a whole recently embarked on a clear recovery course with a similarly high increase that the Stoxx Europe 600 Automobiles & Parts sub-index has seen since the January low.

The development of the free cash flow in the industrial business is well above market expectations, wrote analyst Daniel Roeska from Bernstein Research in a study published on Friday. According to preliminary calculations, free cash flow increased to 11.3 billion euros last year. The development was partly due to lower working capital, the company said.

According to a dealer, this development is pleasing because it underpins the high dividend yield of Mercedes-Benz. With its profit-sharing scheme, the car manufacturer is considered one of the biggest yield drivers in the DAX. In May 2023, a dividend of 5.20 euros was distributed for the past financial year, which corresponds to a yield of around eight percent at the current level.

Further figures are expected in three weeks' time when the car manufacturer publishes its annual figures. The company merely stated that these were "not subject to ad-hoc publicity" on a preliminary basis: The figures did not deviate significantly from the expectations of the market and the company./tih/edh/men