Electric vehicles help drive sales at BMW

BMW Group beat analyst forecasts on Wednesday after strong sales of electric cars and higher prices helped offset the worst of the global semiconductor shortage.

A total of 593,177 BMW, Mini and Rolls-Royce-branded vehicles were delivered to customers in the third quarter, down 12.2% on the same period a year previously.

The German car manufacturer blamed the decline on the global semiconductor shortage, with deliveries down in both Europe and Asia, although they rose in the Americas year-on-year.

However, higher prices for new and used cars and a favourable product mix helped offset the lower sales volumes, and third-quarter revenues rose 4.5% to €27.47bn. Demand for electrified vehicles was especially strong, with sales of fully electric and plug-in hybrids in the nine months to September double last year’s level, at 231,575.

Third-quarter earnings before interest and tax rose to €2.88bn from €1.92bn a year previously, while net profits jumped 42% to €2.58bn. Analysts had been expecting net profits closer to €2.38bn.

Nicolas Peter, BMW’s board member for finance, said: "Business during the current financial year-to-date has benefited substantially from the favourable stable market situation and continued brisk demand."

Looking to the full year, BMW reiterated that it expected group pre-tax profits to be "significantly higher" than 2020’s figure.

EBIT margin for the car business is forecast to come in between 9.5% and 10.5%. In financial services, the forecast for return on equity was revised upward, to between 20% and 23% from between to 17% and 20% previously, "due to the improved risk situation".

Peter said: "We expect the semiconductor supply situation to remain an issue beyond 2021." But he added: "We are firmly on course to meet our outlook for the full year ahead, and we look ahead with confidence."

As at 1430 GMT shares in BMW were trading 1% higher.