(Bloomberg) — BMW AG expects profit to rise this year, building on positive momentum from late last year as economic gloom from the pandemic lifts to boost demand in key regions.
Pent-up demand during the second half of last year helped boost profitability, BMW said Thursday in a statement. Pretax profit for the year still fell 35% to US $4.8bn euros (US $5.7bn), compared with a US $4.7bn euros analysts’ estimate compiled by Bloomberg.
“We are looking to 2021 with confidence and aim to maintain the growth momentum of recent months,” Chief Financial Officer Nicolas Peter said. The company gave little details on its outlook for the year, saving specifics for its annual conference on March 17.
Carmakers have been more upbeat about this year, predicting more positive momentum to last. Archrival Daimler AG last month said it expects significantly higher earnings, and Volkswagen AG forecast higher margins. Their forecasts hinge on further fallout from the pandemic to be limited, and could be dented by a global shortfall of semiconductors and higher commodity prices.
BMW reported preliminary annual earnings in January, when it said that a recovery in many markets helped boost its automotive margin to the upper end of an expected corridor of zero to as much as 3%.