BMW has posted a set of financial results for the third quarter lifted by stronger sales and rebounding demand in key markets, most notably China. However, the company warned of risks ahead due to the pandemic ‘gaining momentum’.
BMW’s quarterly EBIT profit recovered in the third quarter, rising by almost 10% to EUR2.46bn. Group net profit amounted to EUR1.8bn (2019: EUR1.5bn; +17.4%).
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In Q3 BMW delivered a total of 675,592 (2019: 621,981; +8.6%) BMW, MINI and Rolls-Royce brand vehicles to customers around the world – a new quarterly all-time high, it said. Group revenues amounted to EUR26.3bn (2019:EUR26.7bn; -1.4%). A strong performance by the BMW Brilliance Automotive Ltd. joint venture in China contributed to the improved financial result, the company said.
“The third-quarter performance underlines the BMW Group’s operational strength and ability to perform well within a challenging environment. We improved group earnings compared to one year earlier and are therefore firmly on track towards achieving our targets for the full year. We manage our day-to-day operations closely, taking regional fluctuations in demand into account, and can respond to changing market situations at any time,” said BMW chairman and CEO Oliver Zipse.
“We are shaping the transformation of our industry from a position of strength and are very well positioned for the years to come. At the same time, we are already strategically and technologically aligning the group for the period after 2025 – including key aspects such as vehicle architectures and planning for vehicle production by plant.”
BMW warned that the level of risk due to the negative impact of the pandemic is assessed as high. After a more stable phase in the economic environment in the third quarter, ‘the pandemic is now clearly regaining momentum’, BMW said.
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By GlobalDataIn light of the containment measures required as well as the economic impact, a high level of uncertainty remains, BMW warned in a statement. ‘If the corona pandemic takes an even more serious course and the global economy experiences a perceptible downturn, the risk exposure could be considerable, particularly on the demand side. The BMW Group is monitoring developments closely and remains well prepared to act swiftly and decisively.’
See also: BMW reports financial boost as demand rebounds
