A high degree of resilience despite declining results
Last Wednesday, BMW announced its results for the second half of 2022; and they are down… Its sales are down 20% and its net profit is down 36%. However, the manufacturer is maintaining its annual operating margin target. Its operating income reached 3.4 billion euros and its margin should still be between 7 and 9% over the year. This result was described as resilient by Oliver Zipse, the chairman of the management board of the BMW group, especially in unfavorable conditions he says.
An unpromising second half
Like its European competitors (notably Renault or Stellar) and even worldwide, BMW is indeed experiencing a particularly unfavorable context: war in Ukraine, inflation, shortage of semiconductors, supply chain failures due to the zero Covid policy in China, etc. The Bavarian manufacturer therefore announces the color: he expects that difficult trading conditions continue in the second half and, for the whole of 2022, deliveries slightly lower than the previous year . However, its operating margin should remain high thanks to strong demand for higher-margin vehicles, in particular its SUVs and luxury electric models.
