fbpx
How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more The United States Contributes USD $223 Million to Help World Food Programme (WFP) Save Lives and Stave Off Severe Hunger in South SudanRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more Ambassador Jacobson Visits Gondar in the Amhara Region to Show Continued U.S. Support for the Humanitarian and Development Needs of EthiopiansRead more Voluntary Repatriation of Refugees from Angola to DR Congo ResumesRead more Senegal and Mauritania Are Rich in Resources, Poor in Infrastructure, Now Is the Time to Change That Read more Madinat Jumeirah: Dubai’s Stunning Four Hotel Beach Resort Offers Unirvalled Benefits for Summer StaycationsRead more

Chip shortage ‘likely’ to hit second half, BMW predicts

show caption
BMW has so far been able to make up for a global shortage of semiconductors but will now start to feel the effects./AFP
Print Friendly and PDF

Aug 04, 2021 - 03:16 AM

FRANKFURT, GERMANY — German car giant BMW posted record profit of 4.8 billion euros for the second quarter on Tuesday, but warned the second half of the year would “likely” be affected by semiconductor shortages.

The Bavarian company has so far been able to make up for a global lack of supply in this essential component but will now start to feel the effects.

“The longer the supply bottlenecks last, the more tense the situation is likely to become,” the financial director Nicolas Peter said in a press release.

“We expect production restrictions to continue in the second half of the year and hence a corresponding impact on sales volumes.”

An increase in the price of raw materials is also “likely to impact” the second half of the year.

BMW’s record earnings for April to June arose partly because a fine from the European competition authorities in July came in one billion euros ($1.2 billion) below the what was expected and was recorded as a positive effect in the results.

Brussels issued BMW and Volkswagen with the fine for colluding on the development of anti-pollution technology for diesel cars.

Daimler, which participated in the wrongdoing but alerted authorities to it, was spared any penalty.

A significant increase in sales as the economy began to bounce back from the coronavirus pandemic also helped lift the figures.

In comparison, the company posted a loss of 212 million euros in the second quarter of 2020, when the pandemic halted trade and travel worldwide.

The division’s operating margin for the year is therefore forecast to touch the “upper end” of the range between seven and nine percent, up from the six to eight percent previously expected.

In the first half, this closely watched figure reached 13 percent, well above the figure of negative four percent recorded for 2020.

Revenue was up by 43 percent year-on-year for the period April to June and up 28 percent to 55.4 billion euros in the first half.

ZONNTECH.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.