Higher car prices support BMW’s profits despite inflation, ‎supply chain problems

German luxury car maker BMW announced on Thursday a rise in its quarterly net profit, and maintained its outlook for the year as a whole, after higher prices helped it mitigate the impact of higher costs and supply chain problems.

“Our strong results in the third quarter confirm that resilience breeds resilience… and we are on track to achieve our goals for this year,” Chief Executive Officer Oliver Tsepse said in a statement.

However, the company warned that rising inflation and higher interest rates would hurt the purchasing power of consumers in the coming months.

She stated that she expects full-year sales to be slightly lower than in 2021.

Despite a 9.5% drop in total sales compared to the same period last year, the company’s third-quarter profit jumped 35.3 percent to 37.18 billion euros ($36.49 billion), exceeding analysts’ expectations of 35.32 billion euros, according to Refinitiv estimates.

BMW’s profit before tax came to 4.1 billion euros, beating analysts’ expectations of 3.4 billion euros.