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BMW Q3 Results Beat Estimates Amid Boost from Price Increases

Published 11/03/2022, 05:10 AM
Updated 11/03/2022, 05:16 AM
© Reuters.
BMWG
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By Scott Kanowsky 

Investing.com -- Bayerische Motoren Werke AG (ETR:BMWG) posted a jump in third-quarter income and sales, beating consensus estimates for both figures, thanks to higher pricing and strong demand for fully-electric vehicles.

The German car manufacturer reported group earnings before interest and taxes for the three months ended on September 30 of 3.68B euros ($3.59B), an increase of 27.7%, while revenues climbed to just under 37.18B euros.

Analysts had predicted a quarterly core profit of 3.63B euros and turnover of 35.37B euros.

An uptick in pricing for new and used vehicles, itself a response to a rise in raw material and energy expenses, helped fuel BMW's performance during the period.

Deliveries of all-electric cars - in particular of BMW's iX3, iX and i4 models - doubled versus the previous year to over 128,000 units.

But the number of total vehicles shipped to customers, excluding motorcycles, slipped marginally as the firm continued to grabble with supply chain disruptions stemming from strict COVID-19 lockdowns in China. Despite this decrease, BMW still reiterated its guidance for full-year core earnings margin of 7% - 9% at its key automobiles segment.

Meanwhile, income at BMW's financial services unit - which provides funding options to buyers - missed expectations, as the business took out greater provisions against bad loans in the face of "geopolitical uncertainties and [the] weaker macroeconomic outlook."

Looking ahead, BMW warned that elevated inflation and interest rates will likely impact consumer purchasing in the coming months. It added that raw material costs will remain high, but said it does not see energy supply shortages disrupting production.

Shares in BMW fell in early European trading on Thursday.

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