BMW Expects Higher Earnings in 2022, Flags Impact From Ukraine-Russia War
16 March 2022 - 06:50PM
Dow Jones News
By Kim Richters
BMW AG on Wednesday said effects from the war in Ukraine are
restricting its production and have an impact on the current-year
outlook, though earnings are expected to rise significantly thanks
to the consolidation of its Chinese joint venture.
The German luxury-car maker said it expects car deliveries this
year to be on the same level as 2021 because the situation in
Eastern Europe is affecting production.
"Without these negative effects, year-on-year deliveries in the
Automotive Segment would have been expected to trend slightly
higher," BMW said.
The company is also guiding for an earnings before interest and
taxes margin for its automotive segment between 7% and 9% in 2022,
which compares with 10.3% in 2021.
"Without the impact of the war in Ukraine, the BMW Group would
have targeted a range of 8%-10%," it said.
The auto maker also expects free cash flow in its automotive
segment to reach at least EUR7 billion this year and group earnings
before taxes to grow significantly thanks to the previously
announced consolidation of joint venture BMW Brilliance
Automotive.
As already announced, BMW said it will see positive one-time
effects from the consolidation on earnings and revenue in the
automotive segment, which are to increase significantly. The
consolidation doesn't affect the segment's Ebit margin.
BMW released figures for 2021 earlier this month, with after-tax
profit jumping to EUR12.46 billion from EUR3.86 billion in 2020,
and revenue rising to EUR111.24 billion from EUR98.99 billion.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
March 16, 2022 03:35 ET (07:35 GMT)
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