BMW muscles through global chip shortage with jump in profit

BMW AG earnings jumped to beat expectations after higher vehicle prices and prioritising money-spinning models like the $75,000 X7 SUV helped the company offset output reductions due to the dearth of chips.

Group earnings before tax surged 50 per cent to 2.9 billion euros ($3.4 billion) in the third quarter, BMW said Wednesday, compared with an average analysts’ estimate of 2.5 billion euros. The chip supply woes that have hampered the entire industry will remain an issue beyond this year, it said.
 

BMW has navigated turmoil from the chip shortage better than others, and in late September went against the tide of warnings to raise profit expectations. Carmakers have been able to offset much of the crisis with higher prices.
 

Lufthansa flies back to black on cargo boom

Germany’s Lufthansa expects high demand for its booming cargo business and the recovery of passenger flights to continue next year, it said on Wednesday, after reporting its first underlying operating profit since the coronavirus crisis.

The group reported adjusted earnings before interest and tax (EBIT) of 17 million euros ($20 million) in the third quarter, versus a loss of 1.262 billion euros a year earlier, supported by strong freight business and rising demand.