Spencer Platt | Getty Images News | Getty Images
German automaker BMW on Wednesday set out targets to slightly increase margins for its automotive segment and raise deliveries this year, as it pushes ahead with the rollout of its electric fleet.
The company said it expects an EBIT (earnings before interest and taxes) margin of between 8-10% for its automotive range in 2023, with deliveries set to rise slightly from 2022 and “selling prices remaining at a stable level.” It forecasts the used car market will normalize this year “due to the increased availability of new cars.”
“A high level of flexibility, combined with our operational performance, proved to be an effective combination for ensuring the success of the BMW Group, even in the face of headwinds and taking advantage of opportunities for profitable growth,” Oliver Zipse, chairman of the board of management of BMW AG, said in a press statement.
Like rivals, BMW has been contending with global semiconductor shortages and supply chain disruptions, challenging it to fulfil its book order.
The company confirmed the full-year 2022 results reported last week, including an EBIT of 10.6 billion euros ($11.4 billion) for its automotive segment, which had an. 8.6% margin last year. The company posted its automative cash flow near 11.1 billion euros.
As a result, it proposed a dividend of 8.50 euros per common stake share, compared with a 5.80 euro payout for the same stock in the previous year.
The company announced the appointment of a new chief financial officer on March 9, with Walter Mertl due to assume…