BMW profit drops in Q2

German luxury carmaker BMW reported that its profit attributable to shareholders for the second quarter dropped to €2.84 billion ($2.89 billion), or €4.30 per share, from €4.77 billion, or €7.23 per share, last year, reported dpa-AFX, quoting RTT News.

Profit before tax for the quarter was €3.93 billion down from €5.98 billion in the previous year.

But revenues for the quarter grew to €34.77 billion from €28.58 billion last year.

Owing to the negative impact on production, the BMW Group now anticipates a slight year-on-year decline in automotive segment deliveries over the full 12-month period.

The 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, with a corresponding negative impact on earnings in the form of further rising costs for materials and manufacturing.

BMW shares were losing around 5% in morning trading in Germany in the wake of the figures.

Looking ahead, the company maintained a 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.

Meanwhile, a slight decrease in the 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%.

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

For the second quarter, profit attributable to shareholders dropped to €2.84 billion from €4.77 billion last year.

Earnings per share fell 40.5% to €4.30 from €7.23 euros a year ago.

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

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

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

BMW-brand vehicle deliveries declined 19.6%, and the drop was 21.6% in Mini deliveries and a 2.6% drop in Rolls-Royce vehicle deliveries.

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

Motorcycles deliveries declined 7.5% to 60,152 units.

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