BMW Stock Dips On Weak Q2 Profit, Delivery Outlook Revision

Shares of Bayerische Motoren Werke or BMW AG were losing around 5 percent in the morning trading in Germany after the luxury carmaker reported Wednesday weak profit and deliveries in its second quarter, while revenues were higher. Looking ahead, the company maintained fiscal 2022 profit growth view, but trimmed forecast for automotive deliveries owing to the negative impact on production.

BMW Group said its latest performance was negatively impacted by the war in Ukraine and ongoing supply bottlenecks for semiconductor components.

For fiscal 2022, the company continues to project significantly higher profit before tax from last year’s 16.06 billion euros.

Meanwhile, a slight decrease in Automotive segment deliveries are expected now, compared to previous estimate of in line with last year’s level of 2.52 million units.

The Automotive segment’s EBIT margin is still predicted to come in within a range between 7 and 9 percent.

Motorcycles segment deliveries are still expected to increase slightly with segment EBIT margin within a range between 8 and 10 percent.

BMW Group also expects higher expenses for raw materials and energy prices in the second half of the year, particularly due to reduced gas supplies.

For the second quarter, profit attributable to shareholders dropped to 2.84 billion euros from 4.77 billion euros last year. Earnings per share fell 40.5 percent to 4.30 euros from 7.23 euros a year ago.

Profit before tax for the quarter was 3.93 billion euros, down 34.3 percent from 5.98 billion euros in the previous year.

Revenues for the quarter, however, grew 21.6 percent to 34.77 billion euros from 28.58 billion euros last year.

In the quarter, automotive production volume edged up 0.5 percent to 616,878 units, while automotive deliveries fell 19.8 percent from last year to 563,187 units.

BMW?brand vehicle deliveries declined 19.6 percent, and the drop was 21.6 percent in MINI deliveries and 2.6 percent drop in Rolls-Royce vehicle deliveries.

Second-quarter deliveries of all-electric vehicles increased 85.2 percent to 40,601? units.

Motorcycles deliveries declined 7.5 percent to 60,152 units.

In Germany, BMW shares were trading at 76.67 euros, down 5.44 percent.

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