BMW Warns On H2 Despite Strong Q2 Results; Stock Down

Shares of BMW Group were losing around 5 percent in German trading after the luxury automaker warned Tuesday that its second half-year is likely to be more volatile, affected by supply bottlenecks, high prices for raw materials and a shortage of semiconductors. This was despite reporting strong second-quarter results driven by solid demand.

The company expects production restrictions to continue in the second half of the year and hence a corresponding impact on sales volumes.

For the full year 2021, BMW expects business to develop positively overall, and it raised its full-year outlook for the Financial Services and Motorcycles segments. The company also noted that its targets for the year are to be met with a slightly smaller workforce.

Despite short-term challenges, the company said it remains focused on long-term strategy of leveraging its innovative strength and sustainable profitability.

In its second quarter, BMW recorded significantly higher results with strong demand for its premium vehicles and continued good pricing. Sales and earnings have also grown solidly compared with the pre-pandemic financial year 2019.

For the second quarter, net profit was 4.79 billion euros, compared to a loss of 212 million euros in the prior year. Earnings per share were 7.23 euros compared to a loss of 0.35 euros. Profit before tax was 5.98 billion euros, compared to a loss of 300 million euros.

Second-quarter revenues were 28.58 billion euros, up 43.1 percent from last year’s 19.97 billion euros. Revenues grew 45.2 percent on a currency-adjusted basis, driven by higher sales volumes and better selling prices achieved across both new and pre-owned automobile markets.

The company delivered total of 702,441 units to customers worldwide, up 44.7 percent from prior year’s 485,464 units.

BMW brand vehicles were 617,667 units, up 43.5 percent, and the growth was 52.8 percent in MINI brand vehicles to 83,165 units and 127.6 percent rise in Rolls-Royce brand vehicles to 1,609 units.

All major sales regions contributed to the overall growth in sales volume. In Europe, deliveries climbed 75.2 percent, and the growth was 45.7 percent in Germany.

In the Americas, deliveries grew 82.7 percent mainly with growth of 88.5 percent in the USA. In Asia, deliveries increased 15.2 percent with 11.7 percent increase in China.

Deliveries of electrified vehicles surged 167 percent in the quarter.

In Germany, BMW shares were trading at 81.09 euros, down 4.49 percent.

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