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BMW Q3 Profit Climbs, Backs FY22 View; Stock Down

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German luxury carmaker BMW AG reported Thursday higher profit and sales in its third quarter benefited by strong pricing, despite weak margin and slight drop in Automotive deliveries.

Looking ahead, the company maintained fiscal 2022 forecast for significantly higher earnings, and slightly lower sales with weak deliveries. In Germany, BMW shares were losing around 4 percent in the morning trading.

BMW Chief Financial Officer Nicolas Peter said, "As a global premium manufacturer, we are benefiting now more than ever from our balanced positioning in the three major regions of the world: Europe, the Americas and Asia. Overall, we expect the positive momentum for our company to continue in 2023. Our attractive products and growing demand for e-mobility make us optimistic about the future."

For the full year 2022, the company continues to expect Group pre-tax earnings to be significantly higher, due to the full consolidation of Chinese joint venture BMW Brilliance Automotive Ltd. Or BBA.

BMW still targets slightly lower sales than last year, although sales of fully-electric vehicles should still double. The company also projects slight decrease in deliveries compared to the previous year.

The EBIT margin for the Automotive Segment is still forecast to be within the range of 7 percent to 9 percent.

In the fourth quarter, the company projects the number of deliveries to increase significantly on a sequential basis.

The company does not currently expect energy supply shortages to disrupt production this year.

In the Motorcycles Segment, a slight increase in deliveries is projected for the full year, and the EBIT margin is likely to be within the target range of 8 percent to 10 percent.

In the month of September, BMW Group reported solid sales growth of 6.6 percent, with 210,543 vehicles delivered to customers.

In its third quarter, Group net profit climbed 23 percent to 3.18 billion euros from last year's 2.58 billion euros. Group EBT amounted to 4.10 billion euros, up 20 percent from last year. Meanwhile, Group EBT margin fell to 11 percent from 12.4 percent a year ago.

BMW Group's revenues reached 37.18 billion euros, up 35.3 percent from 27.47 billion euros a year ago.

The strong results reflected solid pricing for new and used cars, a favourable product mix and, mainly revenues from BBA.

Automotive deliveries edged down 0.9 percent from last year to 587,744 vehicles. Automotive Segment revenues increased 42.7 percent to 32.29 billion euros.

The Motorcycles Segment delivered 51,778 motorcycles and scooters to customers, up 5.7 percent. Revenues grew 28.2 percent.

In the first nine months, BMW Group delivered a total of 1.75 million vehicles, down 9.5 percent from last year, amid the impact of global disruption to supply chains and COVID lockdowns in China.

In Germany, BMW shares were trading at 77.23 euros, down 3.75 percent.

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