BMW hits earnings target helped by pricing, China consolidation

BMW's core carmaking business hit its 2022 earnings target, the company said in a statement last Thursday, helped by strong pricing and consolidation of its China joint venture.

Group revenue rose 28 percent to 142.6 billion euros ($150.66 billion) versus a Refinitiv SmartEstimate of 141.6 billion.

Its autos business reported an 8.6 percent margin on earnings before interest and taxes (EBIT) of 10.6 billion euros and cash flow of 11.1 billion euros.

Almost half of the latter came from a cash contribution from Chinese joint venture BMW Brilliance Automotive (BBA).

It proposed a dividend to shareholders of 8.50 euros, up from 5.80 a year earlier.

BMW said last February it would pay 3.7 billion euros to take majority control of BBA after securing the necessary license from Beijing, increasing its stake to 75 percent from 50 percent.

The company said over the year it had faced higher costs of sale, including materials, commodities, logistics and refinancing.

In 2022, BMW sold about 42,000 BEVs in China, up 91.6 percent from the previous year, according to the company.

Shengyang is home to BMW Group's largest production base worldwide, with an annual output reaching 830,000 vehicles.