BMW posts surprising profit increase for the latest quarter

#hashtags: #BMW #SUV

BMW has just released the third-quarter revenue report that reveals a surprisingly big profit increase. The high demand of cars like the X5 SUV helped BMW to post an increase profit for the third-quarter. Earnings before interest and taxes boosted by 4,3 percent to 2,354 billion euros, even if the analyst’s predictions were for 2,16 billion euros. Group net profit for the third quarter came in at 1,579 billion euros, significantly higher than one year earlier by 20,5 percent. BMW’s quarterly sales in Europe, which is the market for 40 percent of its deliveries, were up 6,9 percent to 545,062 cars, leading the group to affirm its goal of exceeding last year’s record 2,12 million sales. Demand for various models was strong, especially for X SUV line-up: nine-month sales of the BMW X5 rose by 19,8 percent to 125,739 units, sales figures for the BMW X6 grew by 40,5 percent and the BMW X4, launched a year ago, recorded nine-month sales of 40,920 units. “The results are good, but the forward perspective looks mediocre”, said Frankfurt-based Bankhaus Metzler analyst Juergen Pieper. “The outlook doesn’t reveal a particularly large amount of optimism and I don’t see great momentum in 2016”. BMW is still having to fight hard for its global luxury-car leading position with Daimler AG’s Mercedes and Volkswagen AG’s Audi. BMW’s models will face new challenges next year as the new Mercedes E-Class and new versions of C-Class will put some pressure. Mercedes deliveries were higher than both BMW and Audi for the third consecutive month in September with an increase of 16 percent in the first nine months of the year. Mercedes is also more competitive in China with deliveries boosted by 31 percent through September. Via Bloomberg