FRANKFURT, Germany (AP) — BMW reported 4.8 billion euros ($5.7 billion) in net profit in the second quarter, rounding out a strong earnings season for Germany’s three big automakers as global auto markets continue to recover from the pandemic — particularly when it comes to luxury cars.
The company warned, however, that shortages of electronic parts could make production and sales for the rest of the year “volatile.”
The Munich-based automaker said Tuesday 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 15.8% 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.
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.
Regulators authorized AstraZeneca’s coronavirus vaccine for use in adults throughout the European Union on Friday, amid criticism the bloc is not moving fast enough to vaccinate its population.
WASHINGTON (AP) — A former FBI lawyer was sentenced to probation for altering an email that the Justice Department relied on during its surveillance of an aide to President Donald Trump during the Russia investigation.
MADISON, Wis. (AP) — Democratic Gov. Tony Evers lashed out Friday at rival Republicans who tried to repeal his statewide mask mandate, saying killing the order would be a ridiculous move comparable to abolishing speed limits.
COLUMBIA, S.C. (AP) — As some conservatives in South Carolina celebrated getting a bill that would ban almost all abortions in the state past a legislative barrier and likely becoming law, they said they are not finished trying to end all abortions.
A Moscow court on Friday put the brother and several allies of Russian opposition leader Alexei Navalny under house arrest for two months as authorities sought to stymie more protests over the jailing of the top Kremlin foe.