Automaker BMW posted higher profits in the second quarter than experts had expected. At 3.43 billion euros, earnings before interest and tax in the group were almost a third lower than the previous year’s figures, as the company announced on Wednesday. However, analysts’ expectations were exceeded.
A year ago, the Munich-based company benefited from the release of antitrust provisions to the tune of one billion euros, and last quarter there were also billions in special costs for the acquisition of the Chinese joint venture BMW Brilliance Automotive ( BBA). )
The gross margin before interest and taxes in the auto business was 8.2 percent, down from 15.8 percent a year ago. Without consolidation effects, it would have been 12 percent in the months of April to June. For the full year, BMW lowered its sales forecast for passenger cars due to the difficult economic environment, but maintained operating margin targets in the 7 to 9 percent range.
Group sales grew in the second quarter despite a decline in vehicle shipments. Mainly due to the purchase in China, it increased by 21.6 percent year-on-year to almost 34.8 billion euros. The bottom line was a consolidated surplus of 3.05 billion euros. A year ago it was 4.79 billion.
However, due to the economic environment, BMW is becoming more careful about sales targets. The people of Munich now expect car sales in 2022 to be “slightly below” last year’s level of 2.5 million cars, as the DAX company announced on Wednesday. For BMW, that means a drop of between one and five percent. So far, CEO Oliver Zipse had targeted the previous year’s level. The supply-constrained environment remains difficult, it said. Inflation and rising interest rates were also measured against demand.
At the same time, the outlook for the highly visible profit margin before interest and tax of 7 to 9 percent in the segment remains. Price developments and a shift towards more expensive models should partially offset the decline in shipments. On average, analysts recently expected a value at the upper end of the forecast range for the full year. In financial services, on the other hand, BMW is increasingly optimistic about the return on equity.
BMW shares slipped into the red early in the morning. On Tradegate, the paper is listed nearly one percent lower at EUR 79.73. From a technical point of view, the paper is currently in a sideways trend. Investors remain invested by leaving EUR 67.50.
(With material from dpa-AFX)