BMW reports higher margin in Q3, sticks to annual forecast
2023.11.03 03:03
© Reuters. FILE PHOTO: A worker cleans a BMW i7 xDrive60 elecric car while it is charging at a BMW dealership in Sandton, South Africa, October 27, 2023. REUTERS/Siphiwe Sibeko/File Photo
BERLIN (Reuters) – BMW (ETR:) reported a higher margin in the third quarter in its automotive segment on Friday, with sales of higher-priced and fully-electric cars keeping it on course to hit annual forecasts.
The carmaker’s margin on earnings before interest and taxes was 9.8% in the quarter, rising to 10.8% excluding the impact of last year’s decision to take majority control of its Chinese joint venture BMW Brilliance Automotive (BBA).
Group revenues rose 3.4% to 38.5 billion euros ($40.92 billion), but group net profit fell 7.7% in light of last year’s figures being boosted by the BBA consolidation, BMW said.
Free cash flow for the automotive segment this year so far came in at 5.7 billion, near the forecast for the full year of 6 billion.
The carmaker, which has maintained a cautiously optimistic tone throughout the year and raised its automotive margin outlook in August, kept its positive tone with annual forecasts unchanged.
Supply chain issues, which it warned in August could continue throughout the year, had eased, it added.
Fully electric sales hit 15.1% in the third quarter, outstripping BMW’s end-year target of 15%.
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