By David Sachs

BMW shares fell Tuesday after the car maker reported a second-quarter automotive margin below expectations but raised the auto segment's guidance for the year.

At 1030 GMT, shares in BMW were down 6.1% to EUR104.14.

The German car maker said its automotive segment finished the quarter with an earnings before interest and taxes margin of 9.2%. That figure is below the consensus of 10.1%, RBC Capital Markets analyst Tom Narayan said in a note.

BMW characterized its first half as solid with good momentum, but also flagged higher expenses for suppliers as a headwind that will continue into the second half.

BMW said that in its automotive segment the EBIT margin for 2023 is now expected to be between 9% and 10.5% compared with the previous target of 8% to 10%.

"Consensus was already at 9.8%, suggesting that the guidance raise is likely already captured in numbers," the analyst said.

Overall, BMW's update was consistent with what other car makers are reporting, which is an expected downshift in the second half, he said.

BMW will report its full first-half results on Thursday.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

August 01, 2023 07:11 ET (11:11 GMT)

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