BMW boosts profit margin for cars in third quarter

[BERLIN] German carmaker BMW posted a higher-than-forecast profit margin in its core car business in the third quarter despite import tariffs in the US and EU and intense competition in China, the company said on Wednesday (Nov 5).

BMW reported an operating margin of 5.2 per cent for its automotive unit in the July-to-September period, up from 2.3 per cent in the same period last year and higher than the 4.9 per cent forecast in a company-provided poll of analysts.

After revising down its full-year guidance last month due to tariff costs and slow growth in China, the group said it continued to expect the margin for cars to land in the forecast range of 5 to 6 per cent.

Group earnings before interest and tax were in line with expectations at 2.3 billion euros (S$3.45 billion), up by a third year-on-year following a weak performance in the third quarter of 2024 when brake issues hit sales.

Quarterly group revenues missed expectations slightly at 32.3 billion euros.

“In the third quarter, we once again proved that our business model is robust and resilient,” BMW CEO Oliver Zipse said. REUTERS