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german car manufacturer BMW The goals laid out on Wednesday were to slightly improve profit margins at its auto division and increase deliveries this year as it moves ahead with the rollout of its electric fleet.
The company said it expects EBIT (earnings before interest and taxes) margins in the range of 8-10% for its vehicle range in 2023, with deliveries of Slight increase from 2022 and “sales prices remain at a stable level”. It predicts that the used car market will normalize this year “due to increased supply of new vehicles”.
BMW shares rose 1.07% at 8.20am London time following the announcement.
“A high degree of flexibility combined with our operational performance has proven to be an effective combination to ensure the success of the BMW Group, even in the face of headwinds and to take advantage of opportunities for profitable growth,” Oliver Zipse, chairman of the BMW AG Board of Management of BMW AG, said in a press release. stated in the statement.
Like rivals, BMW has been battling global semiconductor shortages and supply chain disruptions, challenging it to fulfill orders.
Company Confirms Full Year 2022 Results reported last week, including earnings before interest and taxes at its automotive division, of 10.6 billion euros ($11.4 billion), which had a . Profit margin was 8.6% last year. The company reported cash flow from its automotive business of nearly 11.1 billion euros.
It therefore proposed a dividend of 8.50 euros per common share, compared to 5.80 euros for the same stock last year.
“We don’t look at one driver trend or one segment or one region in the world, and I think for us that fits pretty well with what we said a few years ago,” Zipse told CNBC. “Now we’re executing The plan. It looks like the plan we’ve executed here has been very successful in terms of revenue, but also in terms of market share.”
He emphasized that BMW’s strategy will continue to prioritize profitability and downplay the impact of soaring inflation on consumer demand.
“Whether inflation actually matters depends on whether you have pricing power in the market,” he noted. “With our global approach here, I am cautiously optimistic that this year we will see slightly higher volumes overall.”
company announce the appointment A new Chief Financial Officer was appointed on March 9, Walter Mertl will assume the post in May following the retirement of Nicolas Peter.
Earlier this week, automakers made a series of upbeat announcements, while Porsche issued an ambitious growth outlook. Record 2022 earnings and Volkswagen Five-year $193 billion investment plan.
BMW expects the main growth drivers of its business this year to be its premium models and battery electric vehicles (BEVs).
“Based on market conditions in the second half of this century, developments in raw material prices and availability, and the pace at which comprehensive charging infrastructure is built, the BMW Group expects the share of BEVs to reach more than 50 percent by 2030,” the company said in its BEV The share will be expressed after reaching 15% in 2023.
BMW plans to deliver 2 million pure electric vehicles by 2025 and more than 10 million by 2030. The first electric cars from the automaker’s MINI brand will hit the market this year, following the Rolls-Royce range’s first all-electric model, the Rolls-Royce Specter, due in 2022 and due in 2023.
The automaker has been working hard on the transition to electric vehicles, announcing in October seek investment The $1.7 billion U.S. business is used to make such cars and batteries.It introduces a pilot fleet of hydrogen vehicles earlier this year.