BMW drives Q3 profit into record ter­ri­tory

German au­tomaker posts 15% rise profit to $2bn

Kuwait Times - - BUSINESS -

FRANK­FURT:

German lux­ury car­maker BMW, the world’s big­gest, beat ex­pec­ta­tions yes­ter­day with a new record net profit for the July to Septem­ber pe­riod af­ter sell­ing record num­bers of ve­hi­cles.

The Mu­nich-based firm said it had made 1.8 bil­lion eu­ros ($2.0 bil­lion) in net profit, up 15 per­cent com­pared with the 1.6 bil­lion eu­ros it made in the same pe­riod in 2015. An­a­lysts sur­veyed by Fact­set had pre­dicted net prof­its would re­main sta­ble in the third quar­ter. BMW was “main­tain­ing a strong ba­sis for the con­sis­tent im­ple­men­ta­tion of our strat­egy” of in­vest­ing prof­its into re­search and devel­op­ment in ar­eas like elec­tric and driver­less cars, chief ex­ec­u­tive Har­ald Krueger said in a state­ment.

Sales by the world’s big­gest high­end car­maker by rev­enue grew to 23.4 bil­lion eu­ros in the third quar­ter, with its BMW, Mini and Rolls-Royce di­vi­sions all book­ing big in­creases in unit sales.

The group sold more than 583,000 cars in the July to Septem­ber pe­riod, up 7.1 per­cent com­pared with the sec­ond quar­ter of 2015. But it wasn’t spared by the cool­ing-off in the US market, which is on a down­wards trend af­ter years of record sales.

CEO Krueger blamed “in­tense com­pe­ti­tion” for an 8.7 per­cent year-onyear fall in US sales in the first nine months in a press tele­con­fer­ence yes­ter­day. The car­maker made up ground in other global re­gions, with net profit for the first nine months of the year growing by 11.7 per­cent to 5.5 bil­lion eu­ros. BMW con­firmed its “con­fi­dent” fore­cast for the full year, say­ing it would slightly in­crease unit sales and pre-tax prof­its com­pared with 2015. “We’ve al­ready brought to­gether the things the whole sec­tor is mea­sured against,” Krueger said in his state­ment, point­ing to a “suc­cess­ful” elec­tric car strat­egy and “high prof­itabil­ity, which en­ables us to fi­nance fu­ture in­vest­ments from our own re­sources.”

As German and in­ter­na­tional ri­vals look to­wards an elec­tri­fied fu­ture, BMW re­cently ex­panded its plans for elec­tric and hy­brid cars be­yond its BMWi brand to cover its whole range.

In early Oc­to­ber, the group said it would of­fer an all-elec­tric ver­sion of the Mini in 2019 and of its BMW X3 ur­ban 4x4 in 2020. Shares in BMW slid 0.9 per­cent to 74.56 eu­ros in early af­ter­noon trad­ing in Frank­furt, down was also down around 0.9 per­cent. — AFP

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.