BMW says that its getting a cash flow boost as vehicle markets continue to recover from the pandemic-induced population lockdowns of the spring.
BMW said in a statement that preliminary free cash flow for its automotive business in the third quarter 2020 amounts to EUR3,065m (previous year: EUR714m) and exceeds current market expectations. This, it said, was due in particular to a faster recovery in several markets, which led to higher sales growth.
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In addition, the company said its has optimised the use of working capital (comprises inventories as well as trade receivables and trade payables) and reduced fixed costs and capital expenditure.
BMW’s statement echoes the recent upbeat announcement from Daimler that also said a faster than expected recovery of demand is boosting its financial position.
However, BMW also warned that economic disruption caused by the coronavirus pandemic ‘continues to significantly impair forecasting and leads therefore to considerable uncertainty in providing an accurate outlook’.
The previous earnings forecasts for the individual segments and the BMW Group remain unchanged.
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By GlobalDataBMW will release its full third quarter (quarter ending 30 September) results on 4 November.
See also: Daimler reports ‘faster than expected’ recovery
