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BMW cuts profit forecast for passenger cars due to Ukraine war

A logo of German luxury car manufacturer BMW is seen ahead of the company's annual press conference in Munich
A logo of German luxury car maker BMW is seen ahead of the company’s annual news conference in Munich, Germany, March 20, 2019. REUTERS/Michael Dalder

March 16, 2022

BERLIN (Reuters) – BMW has lowered its profit margin expectations for its automotive segment for 2022 due to the war in Ukraine, the German carmaker said on Wednesday.

The BMW Group is now forecasting its earnings before interest and taxes (EBIT) in its passenger car segment to be in a range of 7-9% due to the impact of the war on production.

Without the effects of the war, the company would have aimed for a range of 8-10%, it said.

The premium automaker, which sold a record 2.52 million vehicles last year despite semiconductor shortages, reported a 10.3% profit margin for 2021, the highest since 2017.

BMW said it would continue to expect production disruptions due to the war, adding that it could continue to source parts from western Ukraine and maintain a high degree of flexibility in its manufacturing network to minimize disruption.

The company said the war in Ukraine made it difficult to give accurate forecasts for 2022 and it could not factor potential long-term effects of the war into its forecast.

Delivery bottlenecks for semiconductor components are also likely to remain an issue, according to BMW, which does not expect the situation to improve until the second half of 2022.

BMW, which more than doubled pre-pandemic profit to 16 billion euros ($17.67 billion) in 2021, said it expects a significant increase in pre-tax profit this year as a result of the full consolidation of BMW Brilliance in China.

(Reporting by Christina Amman; Writing by Miranda Murray, Editing by Emma Thomasson)

https://www.oann.com/bmw-cuts-2022-profit-forecast-for-car-segment-due-to-ukraine-war/?utm_source=rss&utm_medium=rss&utm_campaign=bmw-cuts-2022-profit-forecast-for-car-segment-due-to-ukraine-war BMW cuts profit forecast for passenger cars due to Ukraine war

DUSTIN JONES

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