BMW Group sales in the three months from July to September dipped 0.4% to EUR18,750m.
Profit before financial result (EBIT) fell 3.7% to EUR1,928m due to new technology cost, increased personnel costs and growing competition. Third-quarter profit before tax (EBT) inched up just 0.1% to EUR1,989m while net profit was up 3.2% to EUR1,330m.
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Group revenues for the nine month period fell 0.8% to EUR55,848m, EBIT was off 5.7% to EUR6,035m, profit before tax slipped 0.3% to EUR6,024m, EBIT margin was 10.8% and net profit rose 3% to EUR4,034m.
“Reported figures for both the third quarter and the nine-month period have developed positively despite the higher level of expenditure on new technologies and a challenging market environment in Europe. We have recorded best-ever worldwide sales volume figures to date and remain within our targeted margin range for the automotive segment”, chairman Norbert Reithofer said in a statement.
Third-quarter automotive segment sales rose just 0.1% to EUR17,196m. Higher costs, increased production and market launch costs plus “the impact of weak car markets in some parts of Europe” depressed EBIT 6% to EUR1,549m for an EBIT margin of 9.0%. Profit before tax fell 4.1% to EUR1,631m.
Nine month sales increased 1.2%, EBIT fell 11.9% to EUR4,887m and profit before tax 9% to EUR4,795m. EBIT margin was 9.5%.
Unit sales during the third quarter rose 10.7% to a new record of 481,657 units while the nine-month tally was up 7.5% to a record 1,436,178 units.
BMW brand sales were up 11.7% to 405,350 units in the third quarter and 9% to 1,209,598 units in nine months.
Even in troubled Europe, third quarter group sales increased 1% to 204,828 units while nine month volume creaked up 0.2% to 641,537 units. Many other regions saw double digit percentage increases.
BMW sees the global market up 4.1% this year and is sticking to its forecasts.
“After a good third quarter, we are well on course to achieve our targets for the full year. We continue to target sales volume growth in the current year in the single-digit percentage range and hence a new sales volume record. Due to high levels of expenditure for new technologies and models as well as investment in the production network, the group profit before tax for 2013 should be on a similar level with the previous year.” Reithofer said.
The automotive segment continues to forecast an EBIT margin of between 8% and 10% for the current year.
