FRNAKFURT, Germany (APP): German automaker BMW on Tuesday lifted its 2023 earnings forecast on the back of strong orders and improved availability of its premium models.
The group said it now expected a pre-tax profit margin (EBIT) of 9 to 10.5 percent, compared with 8-10 percent previously.
Car deliveries are expected to see “solid growth”, it added, after earlier pencilling in only “slight growth”.
The more optimistic outlook comes after BMW released preliminary results showing a “solid” performance in the first half of this year.
The company delivered 1.2 million vehicles over the first six months, a 4.7 percent increase on last year. The group achieved an EBIT margin of 10.6 percent, helped by “a positive price situation”.
Like other carmakers, BMW struggled last year with a global shortage of semiconductors and other supply chain disruptions that curbed production in the automotive sector.
The group nevertheless reported an increased net profit of 18.6 billion euros ($20.4 billion) for 2022, as higher prices for its luxury models helped offset a 4.8 percent drop in deliveries.
With supply issues gradually easing, BMW said it “expects positive momentum in the business during the second half of the year”. “This is built on the ongoing strength of the order bank and an expected improvement in the availability of its premium vehicles,” it added.
The company warned however that it was bracing for “higher expenses for suppliers” due to inflation.
Lingering supply issues will also “continue to be a headwind”, it added.
BMW will publish its detailed results for the first half of 2023 on Thursday.
