BMW on Tuesday revised up its profit forecast for the full year after reporting better-than-expected second-quarter results. However, the car maker warned that the global semiconductor chip shortage as well as a surge in raw material prices would hamper its results during the second half of 2021.
BMW’s total sales rose almost 45% year-on-year during the second quarter, with sales in Europe going up almost 75%, those in the United States surging 88% and those in China rising almost 12%.
The company posted a net profit of EUR 4.8 billion in the second quarter, following a net loss of EUR 212 million in the same period a year ago. In comparison, analysts on average had expected a profit of EUR 2.2 billion.
“Our performance has benefited from strong customer demand during the first half of the year, enabling us to achieve significant growth,” BMW Chief Executive Officer Oliver Zipse said in a statement, cited by Reuters.
“However, in light of a number of prevailing risks, including raw materials prices and a shortage of semiconductors, the second six-month period is likely to be more volatile for the BMW Group.”
BMW Chief Financial Officer Nicolas Peter said that the auto maker had been able to offset the challenges of the chip shortage through “sheer hard work.” Yet, according to the CFO, “the longer the supply bottlenecks last, the more tense the situation is likely to become.”
BMW also said it now projected a full-year operating margin for the automotive segment at the upper end of its forecast range of 7% to 9%.
As of 7:01 GMT on Thursday the shares of Bayerische Motoren Werke AG (BMWG) were edging up 0.43% (EUR 0.350) to trade at EUR 81.690 in Frankfurt.