MUNICH (dpa-AFX) - German luxury carmaker BMW AG (BMW.L, BAMXF.PK, BAMXY.PK) on Wednesday reported higher third-quarter profit with growth in deliveries. For fiscal 2019, the company continues to expect Group profit before tax to be significantly below the previous year's level.
The company further said, 'Within a stable business environment, an EBIT margin in the range of 8 to 10 percent remains the set target for the BMW Group. .. Excluding the impact of the € 1.4 billion provision recognised in connection with ongoing antitrust proceedings, the target range for the EBIT margin remains unchanged at 6 to 8 percent.'
Since the provision has a negative impact on the EBIT margin, BMW is expecting a margin between 4.5 and 6.5 percent in the Automotive segment for 2019. The company also projects a slight increase in the number of deliveries in the Automotive segment.
For the third quarter, group net profit improved 11.5 percent to 1.55 billion euros from last year's 1.39 billion euros. Group profit before tax climbed 23.4 percent to 2.25 billion euros.
Profit before financial result or EBIT improved 32.9 percent to 2.29 billion euros from last year's 1.72 billion euros. The EBT margin came in at 8.4 percent, up from 7.4 percent last year.
The company said the prior year results were hurt by supply distortions and unexpectedly intense competition due to the changeover to WLTP regulations.
Group revenues rose 7.9 percent to 26.67 billion euros from prior year's 24.72 billion euros.
Automotive segment revenues grew 9 percent to 23.02 billion euros.
Third-quarter deliveries of BMW, MINI and Rolls-Royce premium brand vehicles were 613,361 units, up 3.6 percent from last year's 592,303 units.
Regarding its e-mobility products, the company said it aims by the end of 2021 to have more than a million all-electric or plug-in hybrids on the roads worldwide. By 2021, demand for electrified vehicles is likely to double compared to 2019.
By 2023, the company will have 25 electrified models on the roads, more than half of which will be all-electric.
BMW expects to see a steep growth curve up to 2025, with sales of electrified vehicles growing on average by more than 30 percent annually.
In Germany, BMW shares were trading at 72.33 euros, down 0.65 percent.
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