BERLIN (Reuters) -BMW reported on Friday a higher third-quarter margin in its automotive segment, with sales of higher-priced and fully electric cars keeping it on course to achieve 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), beating estimates of eight analysts polled by LSEG, but group net profit fell 7.7% in light of last year’s figures having been boosted by the BBA consolidation, BMW said.
The carmaker, which has maintained a cautiously optimistic tone through the year and raised its automotive margin outlook in August, kept unchanged its positive tone on annual forecasts.
In a statement, it made no mention of high interest rates or inflation weighing on growth, in contrast to other competitors such as Mercedes-Benz and Porsche, which warned of a subdued market environment curbing demand.
Supply chain issues had eased, the company added, after a warning in August that they could continue throughout the year. Sales this year were up 5.1% so far.
Fully electric sales hit 15.1% in the third quarter, outstripping BMW’s end-year target of 15%.
Free cash flow for the automotive segment so far this year came in at 5.7 billion euros, near the full-year forecast of 6 billion.
($1=0.9410 euros)
(Reporting by Victoria Waldersee; Editing by Miranda Murray and Clarence Fernandez)
