The bottom line is that BMW continues to expect a significant increase in profit before taxes.
(Photo: Bloomberg)
Munich The Munich-based car manufacturer BMW benefits from the high prices for new and used cars. For the current year, BMW expects a return on sales before interest and taxes (EBIT margin) of 9.5 to 10.5 percent, as the company announced on Thursday evening, despite the ongoing problems with semiconductor replenishment.
Up to now, the assumption in Munich was seven to nine percent. In the financing and leasing segment, a return on equity of 20 to 23 (previously 17 to 20) percent is expected.
Manufacturers can build and sell fewer cars due to the lack of chips, but they have to make fewer concessions on prices because of the scarce supply. This also has a positive effect on the resale of leasing vehicles.
The bottom line is that BMW continues to expect a significant increase in profit before taxes. In 2020 it fell to 5.22 (2019: 7.12) billion euros. “BMW expects that ongoing positive price effects for new and used vehicles will more than compensate for the negative sales effects in the annual result,” said the press release.
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The new margin targets gave the BMW share a boost in late trading. The automaker’s shares rose by a good two percent in Frankfurt.
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