BMW has lowered its profit margin guidance for 2022 due to the negative impact the war in Ukraine is having on production.
Without the war in Ukraine, the German auto major would have targeted an EBIT margin of 8-10% in 2022, but now has an EBIT margin between 7-9% after taking into account the "negative effects" of production adjustments.
The company reported record profits for 2021 and a 10.3% EBIT margin for its automotive segment.
Group net profit amounted to €13.23bn in the first six months of 2022, a jump of 73.6% compared to the first half of 2021.
Group revenues climbed 19.1% to €65.91bn, with the company saying the full consolidation of the Chinese subsidiary BBA was a main contributing factor, bringing in revenues of around €11bn.
Electric vehicle deliveries more than doubled in the first half of 2022, with sales of pure electric vehicles soaring to 75,890 units compared to 36,087 vehicles in 2021, a rise of 110.3%.
During the same period, sales of electrified vehicles increased significantly, climbing 20.4% to 184,468 units compared to 153,243 vehicles in 2021.
Electrified vehicles’ share of total deliveries rose to 15.9% as compared to 11.4% in 2021's first half, the company said in a statement.
As a result of the geopolitical situation in eastern Europe, BMW Group production will be restricted in upcoming weeks, according to its latest guidance.
As part of its efforts to minimise these limitations, the company said it is also 'engaging in intense and constructive discussions with its partners and suppliers' and production locations worldwide.