BERLIN—BMW bushed analysts’ forecasts connected Wednesday with a 42.4 percent summation successful 3rd 4th nett profits to 2.58 cardinal euros ($2.99 billion) arsenic higher prices and beardown electrical conveyance (EV) income offset little deliveries owed to scarce chips.
In an net call, concern main Nicolas Peter said the institution was assured of topping its people for a 10 percent borderline connected pre-tax net this year, though the 4th fourth could beryllium somewhat dampened by higher taxation payments and concern costs.
Looking ahead, the institution expects beardown EV income to transportation into 2022, Peter said.
While rising earthy worldly prices impacted net this year, the company’s beardown narration with suppliers has cushioned the blow, CEO Oliver Zipse said.
“We person ever had bully oversight implicit our supply chain. That is paying disconnected now—right down to the earthy materials,” Zipse said.
No Chips, No Problem?
Automakers from Volkswagen to Stellantis to Renault saw dampened 3rd 4th income owed to scarce spot supply, with consultancy BCG reporting successful September it expected a full of 10 cardinal to 11 cardinal less cars to beryllium produced worldwide this twelvemonth due to the fact that of the shortage.
But luxury producers similar BMW and rival Daimler, which were capable to rise prices to offset losses, fared amended than others, with some companies reporting an EBIT borderline of 7.8 percent successful the 3rd quarter, outstripping Volkswagen’s 4.9 percent.
BMW’s deliveries fell 12.2 percent successful the 3rd 4th but revenues were inactive up by 4.5 percent. EVs successful peculiar saw a important boost, with income successful the 9 months to September astir treble past year’s levels astatine conscionable nether 232,000 vehicles.
“A amended merchandise premix and bully terms mounting of caller vehicles alongside a unchangeable pricing inclination of utilized vehicles strengthened the fiscal show of the business,” a institution connection said.
Still, Peter said the deficiency of chips was “by nary means a blessing” owed to the tens of thousands of cars the institution could person sold but could not produce.
The concern main said earlier this twelvemonth the institution expected to present up to 90,000 less cars successful 2021 due to the fact that of a deficiency of chips.
BMW maintained its full-year EBIT borderline forecast of 9.5 percent to 10.5 percent for its automotive division, adding this extremity would beryllium achieved done somewhat reducing the fig of employees.
“We are connected way for our full-year forecast and are looking forward,” Peter said. “We expect that semiconductor proviso volition beryllium successful an contented for america beyond 2021.”
($1 = 0.8636 euros)
By Victoria Waldersee
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