In this Friday, May 14, 2021 file photo the logo of German car manufacturer BMW is fixed at the headquarters in Munich, Germany. German automaker BMW reports second-quarter earnings on Tuesday Aug. 3, 2021. (AP Photo/Matthias Schrader, file)
FRANKFURT, Germany (AP) — BMW reported 4.8 billion euros ($5.7 billion) in net profit in the second quarter, rounding out a strong earnings season for Germany's three big automakers as global auto markets continue to recover from the pandemic — particularly when it comes to luxury cars.
The company warned, however, that shortages of electronic parts could make production and sales for the rest of the year “volatile."
The Munich-based automaker said Tuesday it benefited from strong pricing during the quarter and a predominance of more-profitable vehicles in its sales mix. It reaped fat operating profit margins of 15.8% for its luxury cars and SUVs. The BMW result follows strong profits at competitor Mercedes-Benz, a division of Daimler, and at Volkswagen's premium Audi and Porsche divisions, all of which also turned in double-digit operating profit margins.
The company more than doubled its sales of cars with electric motors and said it had made over the air software updates for 2.5 million vehicles this year through improved vehicle connectivity.
BMW CEO Oliver Zipse said the company had benefited from “strong customer demand” but added that “in light of a number of prevailing risks, including raw materials prices and a shortage of semiconductors, the second six-month period is likely to be more volatile for the BMW Group.”
The entire auto industry is struggling with a shortage of semiconductors used for vehicle electronics.
Earnings in the quarter rebounded from a loss of 212 million euros in the same quarter a year ago, when the initial wave of the pandemic led to factory shutdowns.
Before you make your next trade, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.
Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
They believe these five stocks are the five best companies for investors to buy now...
See The Five Stocks Here
Which stocks are likely to thrive in today's challenging market? Click the link below and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.
Get This Free Report