Bayerische Motoren Werke : BMW raises 2021 profit forecast but chip shortage will hit second half
08/03/2021 | 02:31am EDT
BMW has raised its profit forecast for 2021 today announcing strong quarterly results while warning investors about the impact of the global semiconductor chip shortage on the carmaker.
The company saw “strong customer demand during the first half of the year,” according to a statement by chief executive Oliver Zipse.
“However,” he continued, “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.”
The automotive company reported a better-than-expected profit for its second quarter compared with a loss in the same period last year – when the German luxury carmaker felt the force of the pandemic.
BMW said it now expected a full-year operating margin for the automotive segment between seven to nine per cent, up from its previous forecast range of six to eight per cent.
Analysts had expected net income of €2.2bn for the second quarter, according to a Reuters report but the company’s actual net profit exceeded at €4.8bn (£4.1bn), versus a loss of €212m for the same quarter in 2020.