BMW reaps $5.7 billion in profit, warns on parts shortages

FRANKFURT – BMW reported 4.8 cardinal euros ($5.7 billion) successful nett net successful the 2nd quarter, rounding retired a beardown net play for Germany's 3 large automakers arsenic planetary car markets proceed to retrieve from the pandemic — peculiarly erstwhile it comes to luxury cars.

The institution warned, however, that shortages of physics parts could marque accumulation and income for the remainder of the twelvemonth “volatile."

The Munich-based automaker said Tuesday it benefited from beardown pricing during the 4th and a predominance of more-profitable vehicles successful its income mix. It reaped abdominous operating nett margins of 15.8% for its luxury cars and SUVs. The BMW effect follows beardown profits astatine rival Mercedes-Benz, a part of Daimler, and astatine Volkswagen's premium Audi and Porsche divisions, each of which besides turned successful double-digit operating nett margins.

The institution much than doubled its income of cars with electrical motors and said it had made implicit the aerial bundle updates for 2.5 cardinal vehicles this twelvemonth done improved conveyance connectivity.

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BMW CEO Oliver Zipse said the institution had benefited from “strong lawsuit demand” but added that “in airy of a fig of prevailing risks, including earthy materials prices and a shortage of semiconductors, the 2nd six-month play is apt to beryllium much volatile for the BMW Group.”

The full car manufacture is struggling with a shortage of semiconductors utilized for conveyance electronics.

Earnings successful the 4th rebounded from a nonaccomplishment of 212 cardinal euros successful the aforesaid 4th a twelvemonth ago, erstwhile the archetypal question of the pandemic led to mill shutdowns.

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