Berlin — Despite supply chain constraints, higher prices and strong sales of luxury cars have boosted earnings, causing BMW to more than double its pre-pandemic earnings in 2021 to € 16 billion ($ 17.67 billion). ), The company said on Thursday.
Last year, a luxury car maker that sold a record 2.52 million units despite a shortage of semiconductors reported a profit margin of 10.3%, the highest since 2017.
Still, earnings before interest and tax (EBIT) in the automotive segment was hit 4.2% in the fourth quarter as BMW’s previously better global chip shortage caused a 14.2% decline. rice field.
The Group’s net income was € 2.25 billion, a one-third increase from last year, but well below € 5.02 billion in 2019.
BMW’s share price fell 7% from nearly 70.95 euros yesterday at 13:03 GMT, hitting the bottom of Germany’s high-end stock index alongside Volkswagen and the Mercedes-Benz Group, and fears of supply turmoil across Europe. Along the decline in automobile stocks.
French car makers Renault, Stellantis, and Sweden’s Volvo all showed the worst performance in their respective indexes on Thursday.
Premium car makers are better suited to survive supply chain problems than value brands, as they can impose higher costs on consumers through rising prices.
For example, Mercedes-Benz recorded a 24.7% decline in deliveries in the fourth quarter of 2021, but still boosted EBIT by 12% in the automotive and van sectors.
BMW’s sales increased 12.4% from last year to € 111 billion and net income reached a record high of € 12.46 billion.
“We are in a good position and optimistic about the future,” said Chief Financial Officer Nicolas Peter.
The company announced that it will offer a dividend of 5.8 euros per share from 1.9 euros last year.
By Victoria Waldersee
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