BMW says 2021 profit surged as it favored higher-margin vehicles during chip shortage

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German automaker BMW AG said Thursday its earnings and internet revenue strike all-time highs in 2021, in spite of increased investing on research and enhancement connected to electric powered autos.

In a preview of final results that it will present at its yearly meeting up coming 7 days, BMW stated its full-calendar year net profit jumped to 12.46 billion euros, or around $13.7 billion, from just 3.86 billion euros in 2020. Earnings jumped 12.4% year over 12 months to 111.24 billion euros, or about $122.4 billion.

Both equally earnings and revenue notched data for the enterprise.

The maximize in BMW ‘s annual income was driven the previous-fashioned way: by enhanced income of vehicles, SUVs and motorcycles. The automaker’s automobile deliveries, together with autos and SUVs, rose 8.4% from its coronavirus-challenged 2020 outcome, to just around 2.5 million motor vehicles. That came despite production disruptions related to an ongoing international scarcity of semiconductor chips.

About 13% of individuals 2021 deliveries have been “electrified” autos, that means plug-in hybrids or thoroughly electric versions. Sales of BMW Group’s electrified motor vehicles have been just more than 328,000 in 2021, up 70% from the firm’s 2020 result, but nonetheless well quick of EV chief Tesla’s 936,000 2021 whole.

BMW is aiming to have totally electrical motor vehicles account for at the very least 50 percent of its world-wide deliveries by 2030.

The EV force is coming at a price tag. BMW’s analysis and growth paying, significantly of which was focused on new EV architectures and components, rose 10.7% to 6.3 billion euros. But it remained about reliable with 2020 when expressed as a proportion of profits, about 6.2%.

BMW’s profitability also surged as the organization prioritized creation of its most successful auto strains amid the chip scarcity, a great signal for buyers hoping that the firm will be equipped to comfortably finance its transition to zero-emissions autos. The running gain margin in BMW’s automotive segment, a widely viewed figure amongst car analysts, rose to a healthy 10.3% in 2021 from just 2.7% in 2020 and 4.9% in 2019, just before the Covid-19 pandemic roiled world industries.

Gross sales of BMW motorcycles rose 14.8% in 2021, to just about 194,000. The bike unit’s functioning revenue margin rose to 8.3% from 4.5% in 2020.

“Our company figures are evidence that we were in a position to merge the fundamental transformation and the key investment it involves with strong operational results in a very risky surroundings in 2021,” reported Nicolas Peter, who retains a title equivalent to a U.S. company’s main economic officer at BMW. “We are in a very good placement and optimistic about the foreseeable future.”

BMW plans to share some of that hefty revenue with its shareholders. The organization claimed that it will suggest an yearly dividend of 5.80 euros per share, up from 1.90 euros in 2020, as well as a new share repurchase method, at following week’s annual assembly.

Separately, BMW announced on Thursday that it has agreed to purchase Alpina, the brand of a longtime builder of larger-performance variations of BMW cars and trucks, some of which have been available from time to time by using BMW’s personal dealership community. The Alpina model will at some point develop into an in-house trim line for BMW, equivalent to the AMG model at rival Mercedes-Benz.

BMW will report its comprehensive fourth-quarter and whole-year effects at its yearly meeting for shareholders, set to begin on March 16.