View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 1, 2021

BMW raises earnings guidance for the year

High transaction prices due to supply shortages are lifting some automakers’ profits, even with fewer units actually sold.

By David Leggett

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.

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.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto