Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

BMW Q3 Results Beat Estimates Amid Boost from Price Increases

Published 03/11/2022, 09:32
Updated 03/11/2022, 09:32
© Reuters.

© Reuters.

By Scott Kanowsky 

Investing.com -- Bayerische Motoren Werke AG (ETR:BMWG) posted a jump in third-quarter income and sales, beating consensus estimates for both figures, thanks to higher pricing and strong demand for fully-electric vehicles.

The German car manufacturer reported group earnings before interest and taxes for the three months ended on September 30 of 3.68B euros ($3.59B), an increase of 27.7%, while revenues climbed to just under 37.18B euros.

Analysts had predicted a quarterly core profit of 3.63B euros and turnover of 35.37B euros.

An uptick in pricing for new and used vehicles, itself a response to a rise in raw material and energy expenses, helped fuel BMW's performance during the period.

Deliveries of all-electric cars - in particular of BMW's iX3, iX and i4 models - doubled versus the previous year to over 128,000 units.

But the number of total vehicles shipped to customers, excluding motorcycles, slipped marginally as the firm continued to grabble with supply chain disruptions stemming from strict COVID-19 lockdowns in China. Despite this decrease, BMW still reiterated its guidance for full-year core earnings margin of 7% - 9% at its key automobiles segment.

Meanwhile, income at BMW's financial services unit - which provides funding options to buyers - missed expectations, as the business took out greater provisions against bad loans in the face of "geopolitical uncertainties and [the] weaker macroeconomic outlook."

Looking ahead, BMW warned that elevated inflation and interest rates will likely impact consumer purchasing in the coming months. It added that raw material costs will remain high, but said it does not see energy supply shortages disrupting production.

Shares in BMW fell in early European trading on Thursday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.