BMW (BMWG.DE) said on Friday that its automotive segment’s third-quarter margin increased, with sales of more expensive, fully electric vehicles keeping the company on track to meet yearly projections.
The automaker’s profits before interest and taxes margin increased to 10.8% in the quarter, excluding the effect of its decision to acquire majority control of BMW Brilliance Automotive (BBA), a joint venture in China, last year.
Despite exceeding the predictions of the eight experts LSEG surveyed, group revenues increased 3.4% to 38.5 billion euros ($40.92 billion). Still, group net profit fell 7.7% since the BBA consolidation improved last year’s statistics, according to BMW.
The automaker, which lifted its view for automotive margins in August and has been cautiously bullish throughout the year, continued to sound upbeat regarding yearly projections.
Unlike competitors like Mercedes-Benz and Porsche, who warned of a muted market climate restricting demand, it did not highlight in its statement how rising interest rates or inflation were dragging on growth.
The business also stated that supply chain problems have subsided following a warning in August that they may last the entire year. Sales have increased 5.1% so far this year.
Sales of fully electric vehicles reached 15.1% in the third quarter, above BMW’s 15% annual goal.
The automotive segment’s free cash flow for the first half of this year is 5.7 billion euros, close to the 6 billion euros projected for the entire year.
