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Dow Jones Newswires: BMW earnings in reverse despite higher prices

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BMW AG
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confirmed the margin target for its auto business this year, expecting lower deliveries to be offset partly by pricing, but posted lower second-quarter earnings.

The German luxury car maker said Wednesday that quarterly after-tax profit fell to 3.05 billion euros ($3.10 billion) from EUR4.79 billion in the same period a year earlier.

Earnings before interest and taxes declined to EUR3.43 billion from EUR5.01 billion the year prior when company earnings were helped by the partial release of a provision related to European Union antitrust proceedings. Meanwhile, earnings in the second quarter this year were hit by headwinds from the consolidation of BMW Brilliance Automotive Ltd., it said.

Second-quarter revenue rose 22% to EUR34.77 billion, benefiting from positive pricing, product mix and currency translation effects.

For 2022, BMW backed the EBIT margin target for its automotive segment of between 7% and 9% but said deliveries are expected slightly below the previous year.

“The expected decline in deliveries should be partially offset by positive price and mix effects and the continued good development of the used car markets,” the auto maker said.

Write to Kim Richters at kim.richters@wsj.com

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