Admin l Friday, March 10, 2023
MUNICH – Upmarket German car maker BMW posted record profits for 2022 on the back of taking a majority stake in its Chinese joint venture and focusing on more expensive models, the company reported from its Munich headquarters on Thursday.
Profits came in at €18.6 billion ($19.6 billion), almost 50% up on the year, while turnover rose 28% to €142.6 billion. Profits on an EBIT basis rose 4.5% to €14 billion.
During the year, the company acquired a majority stake in BMW Brilliance Automotive (BBA), with the re-evaluation of the stake contributing extraordinary income of €7.7 billion, around a third of pre-tax profits of €23.5 billion.
Unit sales declined to 2.4 million – around 100,000 fewer cars than in 2021 – largely as a result of shortages of semiconductors and wiring harnesses from Ukraine. But profits were boosted by a focus on the upmarket segment, higher prices for new cars and leasing returns on the used market, and a weaker euro.
The dividend is to rise to €8.50 per share, equivalent to almost a third of profits attributable to shareholders.
