BMW Q3 profit rebounds on China demand for luxury cars

BMW Q3 profit rebounds on China demand for luxury cars

FRANKFURT — BMW’s third-quarter revenue rose virtually 10 %, boosted rebounding Chinese language demand for luxurious vehicles.

The automaker reiterated its full-year outlook in a statement on Wednesday, whilst a wave of coronavirus infections continues to brush Europe and the America.

BMW’s quarterly pretax revenue elevated 9.6 % to 2.46 billion euros ($2.87 billion), lifted by an 8.6 % rise in automobile deliveries.

The automotive EBIT (earnings earlier than curiosity and tax) margin rebounded to six.7 % from minus 10.four % within the second quarter and 6.6 % a 12 months earlier, regardless of a 50 % soar in gross sales of lower-margin electrical and hybrid vehicles.

BMW-branded automobiles noticed a soar of 9.Eight % in deliveries, primarily due to a 31 % improve in China, which accounts for nearly a 3rd of the automaker’s automobile gross sales. China helped to offset a 16 % drop in demand within the U.S., the place gross sales have been hit by the coronavirus pandemic.

The corporate generated revenues of 26.three billion euros ($30.7 billion) within the quarter.

Shifts in client habits sparked by the pandemic may additionally clarify a number of the restoration in deliveries, with commuters and holidaymakers spurning trains, buses and planes in favor of personal vehicles the place the chance of an infection is decrease.

Nonetheless, BMW warned there’s a excessive degree of threat on condition that the pandemic is “clearly regaining momentum,” after nations from Germany to the UK and France issued renewed lockdowns which might be anticipated to dent gross sales in the course of the present quarter.

Individually, CEO Oliver Zipse warned final week {that a} no-deal Brexit would harm BMW’s backside line.

Zipse’s cost-cutting push has improved profitability, with the corporate saying on Oct. 20 that free money movement from the automotive sector rose to greater than three billion euros within the third quarter.

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