BMW's Q3 margin beats estimates, maintains annual forecast
BMW has revealed an increased third-quarter automotive margin, with high-priced and electric vehicle sales keeping the company on track to meet yearly projections. The automaker's earnings before interest and taxes reached 9.8% for the quarter. This jumps to 10.8% when excluding the impact of 2022's decision to take a majority stake in its Chinese joint venture, BMW Brilliance Automotive (BBA). Group revenues experienced a 3.4% growth, reaching €38.5 billion ($40.92 billion), surpassing the estimates of analysts surveyed by LSEG.
Group net profit falls 7.7%, supply chain issues ease
Although group revenues rose, BMW experienced a 7.7% drop in group net profit, as last year's numbers were bolstered by the BBA consolidation. The company did note, however, that supply chain issues have improved since their August warning that they could persist throughout the year. Sales have increased by 5.1% this year, with no mention of high interest rates or inflation affecting growth, unlike competitors Mercedes-Benz and Porsche.
Fully electric sales surpass end-year target
During the third quarter, fully electric sales hit 15.1%, exceeding BMW's end-of-year goal of 15%. The robust performance in EV sales has contributed to the company's optimistic outlook on annual forecasts. Meanwhile, sales of premium vehicles climbed by 5.8% to 621,699 units in the third quarter from the year before. The automotive segment's free cash flow for the year so far reached €5.7 billion, nearing the full-year prediction of €6 billion ($6.37 billion).
