bmw
In the second quarter, the Munich company generated more sales despite a decline in sales in the past quarter.
(Photo: AP)
After an increase in sales in the second quarter, the Munich carmaker BMW is preparing for a headwind. Business conditions are likely to remain difficult in the second half of the year, the company said on Wednesday. Inflation and interest rate hikes, which will continue to shape the macroeconomic environment in the coming months, impacted demand.
Accordingly, towards the end of the year a normalization of the above-average high order backlog – especially in Europe – can be expected. BMW boss Oliver Zipse said that BMW benefits from its high flexibility and operational performance. “This strength will now matter again as we see increasing economic headwinds building in addition to ongoing supply shortages.”
The ongoing shortage of chips is causing problems for car manufacturers worldwide and is slowing down production. BMW sold 1.16 million cars in the first half of the year, which is around a seventh less than a year ago. The company does not expect to catch up in the second half of the year, although deliveries are expected to be higher than the same period in 2021.
In the second quarter, the Munich company generated more sales despite a decline in sales in the past quarter. According to the company, sales rose by 21.6 percent to 34.8 billion euros from April to June. Analysts polled by Refinitiv had expected 33.4 billion euros. Among other things, the complete takeover of the Chinese subsidiary BBA played a role. In addition, BMW benefits from the favorable exchange rate, increased car prices and the good situation on the used car markets.
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On the other hand, BMW felt a special effect when it came to profit: At 3.9 billion euros, earnings before taxes were a good third lower than a year ago, when the Munich-based company was able to release a billion euro provision for an EU procedure. In addition, there are negative consolidation effects from the BBA takeover of around 1.1 billion euros, as the company further announced.
More: Mercedes-Benz increases sales and profits – even though the carmaker is selling fewer cars