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BMW Confirms Guidance After Revenue Rose, After-Tax Profit Slipped

By David Sachs

 

BMW confirmed its full-year guidance after revenue rose and aftertax profit fell in the third quarter.

The German car maker said Friday that revenue rose to 38.46 billion euros ($40.85 billion) from EUR37.18 billion in the third quarter of last year. Analysts had expected revenue to come in at EUR37.42 billion, according to FactSet estimates.

The full integration of the joint venture, BMW Brilliance Automotive, helped the bottom line, BMW said. Higher sales volumes and positive product mix effects also contributed, though currency effects dragged on the result.

After-tax profit dropped to EUR2.93 billion from EUR3.175 billion a year prior. Analysts had expected aftertax profit at EUR2.60 billion, according to FactSet. BMW said that interest-rate hedging transactions resulted in a EUR289 million hit.

Earnings before interest and taxes rose to EUR4.35 billion from EUR3.68 billion. The EBIT margin for the automotive segment was 9.8% on the quarter compared with 8.9% a year ago.

The group's earnings before tax margin finished the quarter at 10.6%. It was 11% a year ago.

BMW backed its guidance, which includes an EBIT margin between 9% and 10.5%, and solid growth in deliveries in the automotive segment.

 

Write to David Sachs at david.sachs@wsj.com

 

(END) Dow Jones Newswires

November 03, 2023 03:08 ET (07:08 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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