Thanks to continued good demand for premium cars, BMW increased its operating profit significantly more than sales in the third quarter.
“Our third quarter shows once again: Strong products ensure strong demand – and that for all drive technologies,” CEO Oliver Zipse is quoted in the statement. “This means we are clearly on track for the annual targets we raised in August.”
According to the announcement, sales climbed by 3.4 percent to 38.458 billion euros in the three months thanks to the good financial services business. In the core business with luxury cars, sales fell – as analysts expected – slightly by 0.6 percent to 32.096 billion euros. Meanwhile, EBIT in the group rose by 18.2 percent to 4.352 billion euros. Analysts only expected 4.033 billion.
In the automobile segment, BMW achieved an EBIT of 3.135 billion euros, an increase of 9.1 percent. The margin therefore improved noticeably to 9.8 from 8.9 percent. Analysts had expected slightly less at 9.7 percent.
After taxes, BMW earned almost 8 percent less in the group at 2.931 billion euros due to significantly higher tax payments.
For the year as a whole, the Munich-based group still expects a return in the car business of 9 to 10.5 percent. Car sales are expected to increase solidly, with an increase of between 5 and 10 percent. The free cash flow in the automobile segment is expected to be at least 6 billion euros for the year as a whole.
The BMW share was temporarily trading 2.83 percent higher at 93.67 euros via XETRA.
FRANKFURT (Dow Jones)
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