BMW expects earnings to rise this year as demand for cars is increasing in many key markets. With the roll-out of vaccines, the gloom about the economic conditions is easing, from which the German automaker can benefit.
Even in the last months of 2020, BMW already noticed that there was a recovery.
The rising demand for cars in the second half of the year, among other things, boosted BMW’s profitability. Nevertheless, the German brand’s profit before tax fell by more than a third to 4.8 billion euros last year. Financial director Nicolas Peter said he was confident about 2021. He did not provide precise details on the outlook for this year. This will probably happen during the annual meeting on 17 March.
Other automakers have previously expressed positive about the expectations for this year. BMW rival Daimler said last month that it was expecting a significantly higher profit. Volkswagen, in turn, predicted higher profit margins. The forecasts do depend on further developments around the corona crisis. Shortages of chips and higher commodity prices could also hamper automakers’ forecasts.
BMW reported preliminary annual results in January, saying a recovery in many markets had helped boost margins for the automotive industry. These fell out at the top of the previously issued bandwidth of zero to 3 percent.