Automaker BMW (ETR:BMWG) has reported a rise in revenue to €38.46 billion ($40.85 billion), surpassing analysts' projected €37.42 billion for this year. The increased revenue was attributed to the full incorporation of the BMW Brilliance Automotive joint venture and heightened sales volumes, despite negative currency effects.
However, the company's after-tax profit experienced a decrease, falling to €2.93 billion from €3.175 billion due to interest-rate hedging transactions that led to a significant EUR289 million hit. Despite this decline, the profit still exceeded the forecasted €2.60 billion.
The company's earnings before interest and taxes (EBIT) increased to €4.35 billion, which boosted the automotive segment's EBIT margin to 9.8%. The earnings before tax margin concluded the quarter at 10.6%, alongside solid growth in deliveries.
BMW has maintained its yearly guidance in light of these financial results. The company continues to navigate through the economic challenges presented by interest-rate hedging transactions and currency effects while capitalizing on its joint ventures and sales volumes.
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