Sean Gallup, Getty Images
Industryweek 12332 110416 Bmw Logo Seangallup

BMW Drives Third-Quarter Profit into Record Territory

Nov. 4, 2016
Up to $2 billion in third-quarter profits, BMW announced plans to invest back into research and development — including in electric and driverless cars.

FRANKFURT, Germany — German luxury carmaker BMW beat expectations Friday with a new record net profit for the July to September period after selling record numbers of vehicles.

The Munich-based firm said it had made 1.8 billion euros ($2.0 billion) in net profit, up 15% compared with the 1.6 billion euros it made in the same period in 2015. Analysts surveyed by Factset had predicted net profits would remain stable in the third quarter.

BMW was “maintaining a strong basis for the consistent implementation of our strategy” of investing profits into research and development in areas like electric and driverless cars, CEO Harald Krueger said in a statement.

Sales by the world’s biggest high-end carmaker by revenue grew to 23.4 billion euros in the third quarter, with its BMW, Mini and Rolls-Royce divisions all booking big increases in unit sales. The group sold more than 583,000 cars in the July to September period, up 7.1% compared with the second quarter of 2015.

But it wasn’t spared by the cooling-off in the US market, which is on a downwards trend after years of record sales. CEO Krueger blamed “intense competition” for an 8.7% year-on-year fall in U.S. sales in the first nine months in a press teleconference on Friday.

The carmaker made up ground in other global regions, with net profit for the first nine months of the year growing by 11.7% to 5.5 billion euros. BMW confirmed its “confident” forecast for the full year, saying it would slightly increase unit sales and pre-tax profits compared with 2015.

“We’ve already brought together the things the whole sector is measured against,” Krueger said in his statement, pointing to a “successful” electric car strategy and “high profitability, which enables us to finance future investments from our own resources.”

As German and international rivals look towards an electrified future, BMW recently expanded its plans for electric and hybrid cars beyond its BMWi brand to cover its whole range. In early October, the group said it would offer an all-electric version of the Mini in 2019 and of its BMW X3 urban 4x4 in 2020.

Copyright Agence France-Presse, 2016

Popular Sponsored Recommendations

Onsite Wind Generation Guide for C&I

Jan. 22, 2024
This document offers insights into using onsite wind power for businesses, covering feasibility, project development, technology selection, and benefits of renewable energy.

Service Lifecycle Management – Challenges and Opportunities

Feb. 18, 2024
Gain insights into the next wave of aftermarket optimization with Harvard Business Review’s whitepaper, in association with Tavant. Get an in-depth look at AI-powered Service ...

Get ready for CLOUD 9: Nine reasons to move to the Microsoft Cloud

Jan. 24, 2024
With pioneering AI (Copilot, built on OpenAI) and best-in-class low code development tools (Power Platform), the Microsoft Cloud has no equal. Learn a whole lot more in in “Moving...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!