BMW 1Q Profit Soared on Joint-Venture Consolidation; Backs 2022 View

   By Kim Richters 
 

BMW AG said Thursday that profit for the first three months of the year jumped as it consolidated its Chinese joint venture, and confirmed its targets for the full year.

The German luxury car maker's quarterly after-tax profit rose to 10.19 billion euros ($10.82 billion) from EUR2.83 million the same period a year earlier. Quarterly revenue rose 16% to EUR31.14 billion.

As previously announced, the company's results include positive effects from the full consolidation of its Chinese joint venture BMW Brilliance Automotive Ltd.

"The company also benefited from positive pricing and product mix effects and was able to expand its aftersales business," it said.

At BMW's automotive segment, quarterly earnings before interest and taxes rose 5.9% to EUR2.37 billion and the EBIT margin stood at 8.9%.

BMW backed its guidance for 2022, which includes an EBIT margin for its automotive segment between 7% and 9%.

It said it expects energy prices to remain high, and a tense situation on commodities markets. "The war in Ukraine and rising inflation rates are likely to exacerbate these developments," it said.

The semiconductors supply shortage could ease from the second half of the year at the earliest, it said.

Write to Kim Richters at [e-mail]

(END) Dow Jones Newswires

May 05, 2022 02:18 ET (06:18 GMT)

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