BMW on Tuesday disclosed that it attained $5.7billion net profit in the second quarter.
The company explained that 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 15.8per cent 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.
AP report that 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.
