BMW surprises with a strong third quarter

Jill Petzinger
·Germany Correspondent, Yahoo Finance UK
X model SUVs undergo final diagnostic testing at the BMW manufacturing facility in Greer, South Carolina, U.S. November 4, 2019.  REUTERS/Charles Mostoller
BMW X model SUVs undergo final diagnostic testing at the German carmaker's manufacturing facility in Greer, South Carolina, US. Photo: Charles Mostoller/Reuters

BMW posted optimistic third quarter results on Wednesday, with a rise in deliveries, revenue, and profit. Munich-based luxury carmaker posted a 33% surge in earnings before interest and taxes to €2.29bn (£1.97bn, $2.54 bn), surpassing analyst expectations of €2.12bn.

As with its competitors, demand for its higher-margin SUVs, such as the X7, boosted BMW (BMW.DE) in the last quarter.

“At the nine-month stage, we are well on our way to achieving our targets for the year as a whole,” said BMW’s new chief executive Oliver Zipse in a statement.

Zipse took over the reins from Harald Krüger in August. “However, we are looking further into the future, having recognised that far-reaching technological transformation is a great opportunity for the BMW Group.”

In the quarter, BMW delivered 613,361 vehicles across the company’s three brands, BMW, Mini, and Rolls-Royce, representing a 3.6% rise from the same quarter a year ago. Despite a slowdown in the Chinese car market, BMW has seen growth of more than 14% in deliveries this year.

BMW is investing heavily into what is fast becoming a mandatory switch to electric for carmakers, implementing a cost-cutting programme to save €12bn to fund its electrification. It is aiming to have 25 electric or plug-in hybrid models available by 2023.

Chief finance officer Nicolas Peter said in a statement that the “efficiency-boosting measures” are “bearing fruit.”

The electric Mini goes into production at its Oxford plant this month, and BMW said on Wednesday that that there have been more than 78,000 expressions of interest from customers.

READ MORE: BMW rolls out its first electric Mini in the UK