BMW has raised its profit margin forecast for this financial year to between 9.5% and 10.5% from 7% to 9%, the company said in an ad hoc statement, as higher prices for new and used vehicles outweigh supply shortages.
BMW said that whilst semiconductor supply restrictions are expected to further impact production and deliveries to customers in the coming months, it expects that the continuing positive pricing effects for both new and pre-owned vehicles will overcompensate these negative sales volume effects in the current financial year.
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The statement also said positive earnings effects will positively impact BMW Group earnings before taxes which remain forecast to increase significantly. The Free Cash Flow in the Automotive Segment is now expected to be around EUR6.5bn.
The next quarterly financial statement (to 30 September 2021) will be published on 3 November 2021.
