German Manager Magazin: BMW: More expensive models fill the till, profit and sales increase in double digits002115

The carmaker bmw arises because of the high inflation and the rising Interest charges into a headwind. The general conditions for consumers deteriorated, which will affect consumer behavior in the coming months, the company announced on Thursday. A “normalization of the above-average order backlog – especially in Europe” is expected. Nevertheless, the Munich-based company is sticking to its forecast for the current year. “Overall, we also expect positive momentum for our company in 2023,” said CFO Nicolas Peter (60). the Shares

initially lost around 3 percent.

Despite the energy crisis, BMW expects a significant increase in deliveries by the end of the year, after the number of cars sold in the first nine months was 9.5 percent lower than a year ago – for the year as a whole the number should be just under the previous year’s level . “Currently, the company does not expect that a lack of energy supply will affect production this year,” it said. However, energy and material costs are likely to remain high.

Profit and sales increase in double digits

The carmaker benefits from the continued high prices for new and used cars. Despite rising energy and material costs, BMW generated sales of 37.2 billion euros in the summer quarter, a good third more than a year ago. The pre-tax profit improved by a fifth to 4.1 billion euros. Analysts had predicted lower sales and profits.

For the first nine months, revenues add up to a good 103 billion euros, which is around a quarter more than in the same period of 2021. Pre-tax earnings soared by more than half to 20 billion euros. The profit margin in the auto segment was 8.7 percent after the first nine months and was thus at the upper end of the range of 7 to 9 percent that it had set itself.

Mercedes top, VW flop

A few days ago, the competitor already had Mercedes Benz reported significantly increasing profits and sales in the third quarter. The Stuttgarters also benefited from a higher proportion of more expensive cars and the “good price enforcement” – and raised their eyes.

Volkswagen again had in the third quarter due to high one-off costs despite a decent day-to-day business suffered a noticeable drop in profits. The brand group Premium around Audi, Lamborghini, Bentley and Ducati scaled back their sales targets and spoke of a persistently challenging supply situation.

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