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BMW Backs Guidance Despite Drop in Automotive Profitability

By Dominic Chopping

 

BMW's key automotive unit reported slightly lower-than-forecast profitability in the first quarter as manufacturing costs rose on the year, but the group maintained full-year guidance.

The German luxury-car maker Wednesday reported an operating margin of 8.8% in the division, short of a company-compiled consensus of 9.2%.

Deliveries of its BMW, Rolls-Royce, and Mini brands rose 1.1% to 594,533 units in the quarter, buoyed by growth in most major automotive markets and increased sales of mid-priced cars.

The company's group earnings before interest and tax margin slipped to 11.4% from 13.9%, but the figure still landed above its strategic target of 10% and beat consensus that had been looking for 10.8%.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

May 08, 2024 01:53 ET (05:53 GMT)

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