BMW warns inflation could dent sales
STORY: German carmaker BMW reported better-than-expected quarterly net profit on Thursday – thanks to high car prices.
But it expects revenues to take a dent over coming months due to rising inflation and interest rates.
The higher profit comes despite lower sales volumes, with supply chain issues including the semiconductor chip shortage curtailing output for carmakers globally.
BMW and rivals have been able to raise prices due to resilient demand and low inventories.
However, analysts warn that consumers will start reining in major purchases, with recession risks rising and central banks raising interest rates.
The Munich-based company predicted its above-average order books are expected to “normalize, especially in Europe.”
Finance chief Nicolas Peter still sounded hopeful.
He said BMW expects its "positive momentum" to continue into next year. Though this year's full-year sales will be slightly lower than in 2021, he says sales of fully electric vehicles should double.
BMW shares dropped over 4% in early trades on Thursday following the cautious outlook.
