BMW managed to pass through the intensifying price pressure and the high costs for new vehicles, and report a third-quarter profit higher than expected.
“We expect further sales volume growth for the fourth quarter, even though it is clear that we–and indeed the sector as a whole–are likely to be confronted with adverse business conditions,” BMW Chief Executive Norbert Reithofer said in a statement.
BMW’s net profit increased 16% to 1.28 billion euro and earnings before interest and tax were up 14% to 2 billion euro. Revenue during the third quarter increased 14% to 18.8 billion euro, due to a 9% increase in sales to 434,963 vehicles. BMW benefited from its strong presence in the US and China, as well as the launch of new versions of the 1-series and 3-series.
The European demand for new cars has been shrinking for almost five years, affected by the economic crisis. But even if BMW cannot rely on the European market to increase its profits and sales, it still expects to reach new sales records for the Mini, Rolls-Royce and the namesake BMW by the end of this year. From January to September BMW sold 1,109,962 cars worldwide, up 8.6% compared with the same period last year.