BMW lowers forecast amid disruption in Ukraine, EV deliveries double in first half
BMW lowered its profit margin forecast for 2022 due to the negative impact of the war in Ukraine on production.
Without the war in Ukraine, the German car major would have aimed for an EBIT margin of 8 to 10% in 2022, but now shows an EBIT margin between 7 and 9% after taking into account the “negative effects” of production adjustments.
The company announced record profits for 2021 and an EBIT margin of 10.3% for its automotive segment.
The Group’s net income amounted to €13.23 billion in the first half of 2022, up 73.6% compared to the first half of 2021.
Group revenue soared 19.1% to 65.91 billion euros, with the company saying the full consolidation of Chinese subsidiary BBA was a major contributing factor, generating revenue of around 11 billion euros.
Electric vehicle deliveries more than doubled in the first half of 2022, with pure electric vehicle sales soaring to 75,890 units from 36,087 vehicles in 2021, an increase of 110.3%.
During the same period, sales of electrified vehicles increased significantly, climbing 20.4% to 184,468 units from 153,243 vehicles in 2021.
The share of electrified vehicles in total deliveries rose to 15.9% from 11.4% in the first half of 2021, the company said in a statement.
Due to the geopolitical situation in Eastern Europe, BMW Group’s production will be limited in the coming weeks, according to its latest forecast.
As part of its efforts to minimize these limitations, the company said it is also “engaging in intense and constructive discussions with its partners and suppliers” and its production sites around the world.