BMW has confirmed its full-year guidance after experiencing positive revenue growth in the third quarter. In comparison to the same period last year, revenue rose to €38.46 billion ($40.85 billion), surpassing analysts’ expectations of €37.42 billion according to FactSet estimates.
The integration of the joint venture, BMW Brilliance Automotive, greatly contributed to the company’s positive financial performance. Additionally, higher sales volumes and positive product mix effects played a role in revenue growth, although currency effects did have a slight negative impact on the overall result.
After-tax profit decreased from €3.175 billion to €2.93 billion. However, this figure still exceeded analysts’ expectations of €2.60 billion. BMW attributed this decline to interest-rate hedging transactions, resulting in a €289 million hit.
Earnings before interest and taxes saw a significant increase from €3.68 billion to €4.35 billion. The automotive segment’s EBIT margin for the quarter was 9.8%, representing an improvement from 8.9% in the previous year.
Furthermore, the group’s earnings before tax margin finished the quarter at 10.6%, slightly lower than the 11% recorded during the same period last year.
Despite these fluctuations, BMW is confident in its guidance, which includes an EBIT margin ranging between 9% and 10.5%, as well as solid growth in deliveries within the automotive segment.