In the car division, earnings before interest and taxes rose by almost 60 percent to 3.78 billion euros bmw announced on Thursday in Munich. This corresponded to an operating margin of 12.1 percent and was thus significantly higher than experts had expected. Profitability would have been even higher without the burden of last year’s inclusion of the Chinese joint ventures. BMW boss Oliver Zipse continued to be optimistic and promised growth in all regions except Russia. In addition, the carmaker wants to buy back its own shares worth another two billion euros.
The group as a whole increased its sales also thanks to the takeover in China just over a year ago by a good 18 percent to 36.85 billion euros. At group level, earnings before interest and taxes increased by 58.5 percent to 5.38 billion euros.
The figures were well received by investors: BMW shares rose by almost 2 percent on Thursday, bucking the trend.
The bottom line, however, was a drop in profits of almost two-thirds to 3.66 billion euros. A year ago, thanks to the takeover, BMW was able to credit itself with a valuation effect for the shares already held in the billions.
The Munich company confirmed its annual goals, but warned of strong fluctuations in the markets. Management believes that the good price situation on the new and used car markets, from which BMW has recently benefited, should return to normal. Consumers may hold back due to higher interest rates and high inflation, and competition in the key market, China, is likely to intensify as the Covid pandemic abates.