BMW reports a rise in profit, confirms its full-year targets
The decision to focus on expensive luxury models is paying off
Stocks impacted: Bayerische Motoren Werke AG (BMW)
The German automaker said third-quarter net profit rose 17% to 1.81 billion euros. The firm benefited during the third quarter from regional upturns in demand as well as from the attractive model portfolio on offer to customers. Earnings before interest and taxes fell 16% to 1.92 billion euros. Group revenues fell 1.4% to 26.67 billion euros. In the accompanying statement, the company said the decision to focus on expensive luxury models is paying off and producing the profits the firm will need to fund new technology such as electric cars. BMW confirmed its outlook for the full year 2020, which includes profit before tax significantly below the 2019 level and an auto segment EBIT margin of between 0% and 3%. The carmaker also warned that if the pandemic takes an even more serious course, the risk exposure could be considerable, particularly on the demand side.
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