BMW beats estimates with profit rise
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.
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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.
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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.”