In this news, we discuss the BMW third-quarter profit rebounds on China demand for luxury cars.
FRANKFURT (Reuters) – BMW BMWG.DE on Wednesday said its third-quarter profit rose nearly 10% on rebounding Chinese demand for luxury cars and reiterated its outlook, even as a wave of Coronavirus infections continue to sweep across Europe and the United States.
BMW’s quarterly pre-tax profit rose 9.6% to 2.46 billion euros ($ 2.87 billion), thanks to an 8.6% increase in deliveries of luxury cars.
Automotive EBIT (earnings before interest and tax) margin rebounded to 6.7% in the third quarter, from minus 10.4% in the second quarter and 6.6% a year earlier, despite a 50% jump sales of low-margin electric and hybrid cars during the same period.
BMW-branded vehicles saw a 9.8% jump in deliveries in the quarter, mainly driven by a 31% spike in China, which helped offset a 15.7% drop in demand in the U.S. United, where demand was affected by the coronavirus pandemic, says the automaker.
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Reporting by Edward Taylor; Edited by Maria Sheahan
Original © Thomson Reuters