BMW has reported a sharp rise in earnings, trumping analyst estimates following one-off accountancy changes and a rise in SUV sales.
The German luxury car manufacturer posted earnings before interest and taxes (Ebit) of €2.29bn (£1.97bn) during the last quarter, jumping 33 per cent compared with the same period last year.
Group revenues rose 7.9 per cent to €26.67bn from last year’s €24.72bn.
However, the Munich-based group reiterated there would be a “significant decrease” in full-year profit before tax.
Sales of BMW Group cars, which include brands Mini and Rolls-Royce, edged up 3.6 per cent, with a consumer shift away from sedans to higher-margin SUVs.
The results come as BMW presses ahead with a major investment into electric cars, a market which the group thinks will grow by 30 per cent annual from 2021 to 2025.
Carmakers’ share prices have been given a little boost this week with the German government said to be increasing cash incentives for electric cars, known as an “Environment Bonus”, in order to stimulate demand.
Finance chief Nicolas Peter said in a statement today the efficiency-boosting measures were “bearing fruit”.
Deliveries of the electric Mini, which BMW is building at its state-of-the-art plant in Oxford, are expected to begin in March next year.
The company said today: “Within a stable business environment, an EBIT margin in the range of 8 to 10 percent remains the set target for the BMW Group…Excluding the impact of the € 1.4 billion provision recognised in connection with ongoing antitrust proceedings, the target range for the EBIT margin remains unchanged at 6 to 8 percent.”