LONDON: BMW posted a rise in first-quarter profit on Thursday, boosted by a reevaluation of the German car maker’s stake in its Chinese joint venture and strong pricing, and maintained its 2022 outlook despite volatile prices for commodities and energy.
BMW said the reevaluation of its existing stake in its joint venture with Brilliance Auto Group had resulted in a preliminary profit of 7.7 billion euros ($8.2 billion).
In February, BMW said it would pay 3.7 billion euros to take majority control of its Chinese joint venture after securing the necessary licence from Beijing.
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Stripping out the impact of its stake in the BMW Brilliance Automotive joint venture, BMW posted a 16.3% increase in revenue for the quarter despite a 6.2% drop in car sales due to higher pricing.
The auto industry has been hit by a succession of pandemic-related supply chain problems, in particular a global shortage of semiconductor chips.
Carmakers like BMW have focused on production of higher-margin vehicles, and a lack of supply has boosted prices for new and used cars alike.
The company reported a net profit of 10.2 billion euros versus 2.8 billion euros a year earlier. Excluding the impact of the stake, BMW made an operating profit of 3.4 billion euros, up from 3 billion euros a year earlier.
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