BMW AG increased its forecast for vehicle deliveries for the year on the back of a deep order bank and demand for fully electric cars.
The luxury-car maker now expects “solid” sales this year, up from a “slight” increase, it said Thursday. The new 5-Series sedan and its electric sibling, the i5, will help boost volumes during the second half of the year.
While demand for its luxury cars remains strong, BMW warned Tuesday that increased costs for parts are reducing its cash flow while also citing logistics issues as a constraint. At the same time, it also slightly lifted its full-year earnings forecast as it expects availability of its luxury vehicles to improve in the second half of this year.
Several carmakers now face new logistics constraints after a shortage of semiconductors eased, allowing them to produce more vehicles. Volkswagen AG lowered lowered its delivery outlook last week as shortages of trains and truck drivers left finished vehicles stranded at factories. Porsche AG had to restrict sales of its electric Taycan after grappling with sourcing certain components.
BMW group earnings before interest and tax increased 28% to €4.38 billion ($4.8 billion) compared to the second quarter of 2022, beating average analyst estimates of a €4.23 billion result. Automotive returns rose to 9.2%.
Author: Wilfried Eckl-Dorna
