(Bloomberg) — BMW AG cut its delivery outlook due to ongoing supply-chain snarls, though it’s making up some of the shortfall with higher prices buoyed by strong demand.
The automaker reported second-quarter results that beat expectations Wednesday.
A strong model lineup and used car demand will help it weather the continuing chip shortage, while the company also warned of increasing economic headwinds.
Carmakers are still seeing healthy demand amid a darkening economic outlook and inflation hitting consumers’ pockets.
Mercedes-Benz AG this month raised its outlook, saying it will struggle to keep up with pent-up demand for the rest of the year as the chip crisis is now in its third year. Even so, while many manufacturers are lifting their expectations, concerns over a looming recession are building.
“We see an increasing economic headwind coming up in addition to the ongoing supply shortages,” BMW Chief Executive Officer Oliver Zipse said in a statement.
BMW’s second-quarter group earnings before interest and tax declined to 3.43 billion euros ($3.5 billion), compared with an average analysts’ estimate of 3.2 billion euros, according to data compiled by Bloomberg.
The forecast for margins from automaking remains unchanged at a 7% to 9% range.
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