STORY: Mercedes-Benz is raking in profits, even as it delivers fewer new cars.

The German giant saw pre-tax earnings hit just over $5.5 billion in the first quarter.

That despite a 10% fall in deliveries of new cars.

Shipments of new cars were hit by ongoing supply chain troubles.

But higher selling prices more than made up for that.

The carmaker maintained its guidance for the year, but warned that could change.

Lockdowns in China and the global chip shortage all make for an uncertain outlook.

Mercedes expects both to impact results during the year.

Then there is the conflict in Ukraine.

Mercedes suspended operations in Russia following the outbreak of war.

That cost it around $750 million.

Now the firm says any escalation of the current situation could have very negative consequences for the business.