Why BMW's Profit Boomed Despite the Global Chip Shortage
German automaker BMW (OTC: BMWYY) (OTC: BAMXF) reported a strong second-quarter profit and raised its full-year earnings guidance on Aug. 3, while warning that the ongoing global semiconductor shortage and higher commodity prices could dent its second-half results.
Nearly all of the global automakers have been affected by the chip shortage, which has forced factories around the world to cut production amid high consumer demand. But BMW has fared better than most of its rivals, having secured relatively good supplies of chips so far in 2021.
That has put it in position to take advantage of an environment in which consumers are willing to pay higher prices for the vehicles that are available, driving its strong profit in the second quarter. But BMW's chief financial officer warned that the company may not fare quite as well in the second half of the year.
Source Fool.com
