BMW AG yesterday joined peers with strong earnings dampened by warnings of tense months ahead because of a global chip shortage that is roiling vehicle output.
Earnings before interest and tax surged to 5 billion euros (US$5.9 billion) in the second quarter, compared with an average analyst estimate of 4 billion euros.
The operating return from making vehicles jumped to 16 percent, roughly double the automaker’s annual forecast of 7 to 9 percent.
Photo: Bloomberg
“The longer the supply bottlenecks last, the more tense the situation is likely to become,” BMW chief financial officer Nicolas Peter said in a statement. “We expect production restrictions to continue in the second half of the year and hence a corresponding impact on sales volumes.”
The manufacturer’s expectations mirror concerns among elsewhere.
As Volkswagen AG lifted its operating returns forecast, helped by its luxury Audi and Porsche brands, it warned of worsening supply woes, while Daimler AG has dialed back its delivery expectations due to the shortage.
BMW, while not immune, had fared better than others and has reported only minor disruptions at its factories so far.
The Munich-based automaker also profited from higher prices and giving priority to making its most lucrative models at constrained factories.
The dynamic has helped take the sting out of rising raw material prices, although BMW said that the gains will drag on earnings during the remainder of the year.
As BMW joined automakers in hesitating to make earnings upgrades after a strong first half, Stellantis NV, also reporting earnings yesterday, substantially raised its full-year profitability forecast.
With its Ram and Jeep brands, the company is heavily exposed to the US market, which has had a “breathtaking” rise in prices.
Adjusted operating income margin will be about 10 percent for the year, the automaker formed from the merger between Fiat Chrysler Automobiles NV and PSA Group said.
Stellantis notched an 11.4 percent return in the first six months, more than double the low end of the range forecast in March.
The semiconductor shortage cost the company output of about 700,000 vehicles in the first half, Stellantis said, adding that the impact will be similar for the remainder of the year.
“It was a very strong quarter,” Stellantis chief financial officer Richard Palmer said on a call with reporters.
The company expects the chip situation in the third quarter to be roughly in line with the prior three months — when output was crimped by 500,000 units — and potentially improve toward the end of the year.
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