BERLIN: BMW lifted its annual outlook for its margin on earnings before interest and taxes (EBIT) in the automotive segment on Tuesday but said it foresaw ongoing challenges from supply chain issues and inflation in the second half of the year.
The carmaker'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.
BMW now expects an EBIT margin on its cars division of between 9%-10.5% from 8%-10% previously, and expects solid growth in its deliveries, up from a previous forecast of only slight growth, on the basis of a strong order bank and improved availability of its premium vehicles.
But it reduced its forecast for free cash flow to above 6 billion euros (RM30bil) from around 7 billion euros (RM35bil) previously, citing the need to stock up its inventories and higher investment in electrification.
Full quarterly results will be published on Aug 3.
The carmaker reported preliminary figures of a 12.6% group margin on earnings before taxes in the first half of the year and a 10.6% EBIT margin in the automotive segment, helped by higher sales and pricing.
BMW sales rose 4.7% in the first half of the year compared to last year, when supply chain issues caused by factors including the war in Ukraine and lockdowns in China dented output.
