BMW raised its profit expectations for this year after higher car prices outweighed a worsening semiconductor shortage that is hampering output across global automakers.
The automaker sees earnings before interest and taxes on automaking of between 9.5 percent and 10.5 percent on sales, up from a previous view of 7 percent to 9 percent, according to a statement Thursday.
“Whilst the semiconductor supply restrictions are expected to further impact production and deliveries, the continuing positive pricing effects for both new- and pre-owned vehicles will overcompensate these negative sales volume effects,” the company said.
BMW’s earnings before tax are expected to rise “significantly,” it said, adding free cash flow is seen at around 6.5 billion euros ($7.5 billion).
Chip shortages have plagued the auto industry for months, prompting companies from Renault to Toyota to warn of longer-term hits to output, but higher prices have allowed some to offset their losses.
