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Higher pricing and strong demand on the used car market should partially offset the effects of lower output, the premium carmaker said.
Still, it added a note of caution that tightening sanctions on Russia, interruption of gas supply or the possibility of the war in Ukraine spreading were not factored into its forecast.
The Munich-based carmaker reported a 31% drop in second-quarter earnings before interest and taxes to 3.4 billion euros ($3.46 billion) despite growing revenues, still beating a 3.13 billion euro forecast in a Refinitiv poll of eight analysts.
The consolidation of its China joint venture BMW Brilliance Automotive pushed up revenues in the first half but dampened second quarter earnings, BMW said, reporting an automotive margin of 8.2%, down from last year’s 15.8%.
The premium carmaker, which last year delivered more cars than ever at 2.52 million, had previously expected to match that output this year but now expects a slight fall, it said, with deliveries down nearly a fifth in the second quarter.
Group earnings before taxes in the quarter were down 34.3% because of last year’s one-time gain of 1 billion euros ($1.02 billion) from a partial reversal of EU trust fines, and 1.1 billion in headwinds from the Chinese unit’s consolidation, it said.
Overall, the reevaluation of the Chinese joint venture shares boosted earnings before tax by 7.7 billion euros in the first half.
BMW increased its stake in its joint venture with Brilliance Auto Group to 75% from 50% in February after securing the necessary license from Beijing to take majority control.
It said at the time the deal would have a positive effect of 7-8 billion euros on the financial results of the automotive business.
($1 = 0.9825 euros)
