BMW sees earnings leap on greater costs for luxurious vehicles – Corporations

AFP


Frankfurt, Germany   ●  
Thu, November 3, 2022

2022-11-03
16:54
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Corporations
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German automaker BMW reported Thursday a 23-percent improve in third-quarter revenue because of strong demand for pricier luxurious fashions, but it surely warned that hovering inflation might restrict purchases from customers.

The Munich-based group stated it had booked a internet revenue of practically 3.2 billion euros ($3.1 billion), up from 2.6 billion euros between July and September final yr.

Automobile deliveries, nonetheless, had been down practically one p.c over the interval, because the business continues to grapple with provide chain disruptions and Covid lockdowns in China.

BMW stated “greater costs” for its premium autos had helped ship a “strong” third quarter.

The group stated it was on monitor to fulfill its full-year earnings targets. Though the general gross sales quantity was anticipated to be “barely decrease” than in 2021, gross sales of fully-electric autos ought to nonetheless double, it stated.

“The market success of our fully-electric fashions, specifically, means we will look ahead to the approaching months with confidence,” CEO Oliver Zipse stated in an announcement.

With many international locations bracing for a recession as Russia’s warfare in Ukraine sends vitality costs greater and central banks increase rates of interest to tame red-hot inflation, the group warned that buyer demand would sluggish within the months forward.

“Excessive inflation charges and rate of interest hikes are inflicting circumstances for customers to deteriorate, which can impression their buying behaviour within the coming months,” BMW stated.


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