BMW Group has posted strong financial results for the third quarter on buoyant demand for its SUV products. The company also reaffirmed its earnings forecast for the year.
Profit before financial result (EBIT) rose by 17.1% to EUR2,256m – a new record for the quarter – thanks to a higher value model mix.
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Group profit before tax (EBT) rose by 1.2% to EUR2,013m, also a record. Group net profit was slightly lower than the previous year at EUR 1,314 million (2013: EUR 1,330 million/-1.2%) due to the higher income tax expense, BMW said. The group operating margin (EBIT) was 11.5% (2013: 10.3%).
Group revenues increased in the third quarter by 4.5% on the back of higher sales volume to EUR19,600m compared with one year earlier.
The total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers worldwide increased year-on-year by 5.8% during the period from July to September to a new record of 509,669 units (2013: 481,657 units). Sales of BMW SUVs around the world remain strong.
Nine-month revenues grew by 3.4% to EUR57,740m. EBIT increased by 15.2% to EUR6,949m and profit before tax by 13.5% to EUR6,839m. These figures also marked new all-time highs for a first nine-month period. Group net profit improved by 12.7% to EUR4,547m. The number of vehicles sold in the first nine months increased by 6.5% to a new record figure of 1,529,880 units. The operating margin (EBIT) for the period from January to September came in at 12.0% .
“We continued to perform well in both the third quarter and over nine-month period within an increasingly challenging environment,”said Norbert Reithofer, BMW Chairman.
“As you know, we operate under clear key performance indicators. The most important one is our EBIT margin in the Automotive segment. Our target in this segment is within a range of 8 to 10 percent.
“For the first nine months of the current business year, the EBIT margin in the automotive segment actually stood slightly above our target range for profitability.”
BMW also reaffirmed its guidance on the outlook for full year earnings, despite noting that car demand in China is now “normalising” after a period of strong growth.
“We remain on course to achieve a significant increase in group profit before tax for the full year and to deliver more than two million vehicles during the twelve-month period,” said Reithofer.
