BMW Profit Warning Despite Record Sales Growth
BMW has issued a profit warning, anticipating a slight decrease in pre-tax profits compared to last year. Despite this, the company has reported strong sales growth across all three of its brands during the third quarter.
BMW's main brand saw a 6% increase in sales, reaching 514,600 vehicles. MINI also experienced significant growth, with sales up by approximately one-third to 72,400 vehicles. Rolls-Royce contributed to the overall growth as well. This sales boost can partly be attributed to a weak comparative quarter in 2023, where BMW lost 13% of its sales due to brake problems.
Looking at the broader picture, BMW's sales increased by almost 9% to 588,300 cars in the third quarter, outpacing its rival Mercedes-Benz. Mercedes sold 525,300 passenger cars and vans during the same period. However, BMW's sales of electric vehicles decreased by 0.6% to 102,900 in the third quarter.
Regionally, BMW's sales in Europe increased by around 9% to 239,600 cars, while Mercedes' sales grew by 2%. In the USA, BMW's sales surged by 24%, contrasting with Mercedes' 17% decline. However, in China, BMW's sales decreased by 0.4% to 147,100 cars, and Mercedes' sales dropped by 27% to 125,100 cars.
BMW's profit warning comes despite strong sales growth, driven by increased demand for its brands and a weak comparative quarter in 2023. However, the company has adjusted its sales forecast downwards due to underwhelming sales in China and expected high customs demands from American and German authorities. This has also significantly reduced BMW's forecasted free cash flow.
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