BMW generates more sales than expected
The Munich-based car manufacturer BMW is benefiting from unbroken demand for top-of-the-range models and achieved higher sales in the past quarter. According to the company, sales increased by 3.4 percent to 38.5 billion euros, which was more than analysts surveyed by LSEG had expected. The profit margin in the car business, which is important for BMW, improved to 9.8 percent from 8.9 percent in the same period last year.
BMW CEO Oliver Zipse said that the company was clearly on track for the annual targets raised in August. The Munich-based company is aiming for a margin of between 9 and 10.5 percent for the year as a whole. According to BMW, higher-priced vehicles and electric cars in particular are doing well. For the current year, the Munich-based company is aiming for electric cars to account for 15 percent of total deliveries - this threshold was reached in the third quarter.
The Munich-based company is hoping for an additional boost from the new 5 Series, which has just been launched on the market. However, growth is being held back by unfavorable exchange rates for the US dollar and yuan. In addition, the rise in interest rates had a noticeable impact on profits, with the valuation of interest rate hedges depressing the financial result.
At just under 4.1 billion euros, the rival of Mercedes-Benz and Audi earned 0.9 percent less before tax than a year ago. Since the beginning of the year, pre-tax profit has also fallen by a good third to 13.414 billion euros.
This is primarily due to a one-off effect: in 2022, the complete takeover of the Chinese business had significantly boosted profits. Mercedes-Benz had recently posted significantly lower profits due to supply problems with an important component and tougher competition overall. The GLC combustion engine model, one of the Stuttgart-based company's best-selling vehicles, was particularly affected by bottlenecks in 48-volt systems.
Source: www.ntv.de
