Semiconductors and energy crucial factors to BMW earnings – CEO

Semiconductors and energy crucial factors to BMW earnings – CEO

Summary : BMW CEO Oliver Zipse speaks during a visit of the German Economic and Climate Protection Minister Robert Habeck at the BMW plant in Munich, Germany, January 20, 2022.

BERLIN, Aug 3 (Reuters) – Semiconductor production and energy supply in Europe will be decisive for BMW keeping its automotive segment earnings margin on target, chief executive Oliver Zipse said on Wednesday. The crucial factor will be how the supply situation develops – not just for semiconductors, but also energy supplies in Europe.”

The company was also actively preparing for a potential shortage of gas, evaluating whether it could make up the electricity from gas-powered plants by purchasing external power, Zipse said.

Reporting by Victoria Waldersee, editing by Rachel More

BMW CEO Oliver Zipse speaks during a visit of the German Economic and Climate Protection Minister Robert Habeck at the BMW plant in Munich, Germany, January 20, 2022. REUTERS/Lukas BarthBERLIN, Aug 3 (Reuters) – Semiconductor production and energy supply in Europe will be decisive for BMW keeping its automotive segment earnings margin on target, chief executive Oliver Zipse said on Wednesday.”Semiconductor supply difficulties remain the dominant and decisive issue for our sales performance,” he said in a speech following second-quarter results.”Our EBIT margin in the Automotive Segment should stay within the range of seven to nine percent. The crucial factor will be how the supply situation develops – not just for semiconductors, but also energy supplies in Europe.”The company was also actively preparing for a potential shortage of gas, evaluating whether it could make up the electricity from gas-powered plants by purchasing external power, Zipse said.

Reporting by Victoria Waldersee, editing by Rachel More

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