BERLIN — BMW lifted its annual outlook for its margin on earnings before interest and taxes (EBIT) in the automotive segment but said it foresaw ongoing challenges from supply chain issues and inflation in the second half.
BMW said it now expects an EBIT margin on its cars division of between 9 percent and 10.5 percent from 8 percent and 10 percent previously, and expects solid growth in its deliveries, up from a previous forecast of only slight growth.
The change in outlook comes on the basis of a strong order bank and expected improvement in the availability of its premium vehicles, BMW said in a statement on Tuesday.
In preliminary results, BMW reported a group margin on earnings before taxes of 12.6 percent in the first half and a 10.6 percent EBIT margin in the automotive segment, helped by higher sales and pricing.
BMW’s vehicle sales were 1.2 million in the first half, up 4.7 percent on the same period last year when supply chain issues caused by factors including the war in Ukraine and lockdowns in China dented output.
The automaker expects inflation and supply chain issues to continue to weigh on the second half.
Full quarterly results will be published on August 3.
BMW’s forecast mirrored that of competitors such as Mercedes-Benz, which also raised their earnings outlook but warned the macroeconomic environment would continue to weigh on output.