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While the figures for the third quarter of this year are a source of great excitement for the German group despite the current situation, BMW is nonetheless concerned about the current unpredictable situation.
The manufacturer unveiled yesterday the figures of its third quarter of 2020 showing a clear progression compared to its second quarter, much more difficult.
Since the market recovery in China and its various economic policies linked to the country’s consumption, the group has seen its pre-tax profit increase by nearly 10%. This increase can be explained by the strong growth in demand for luxury cars in China.
BMW expects to achieve a quarterly profit of 2.46 billion euros by the next few results, counting on this recovery in demand, which is up by 8.6%.
Regarding operating margins on this profit, while the group had estimated its figures between zero and 3% for this year, the German group excels once again with a 6.7% increase in the third quarter compared to -10.4% in the second quarter. And against all expectations, the results are better than those of the third quarter of 2019, which stood at 6.6%.
Despite the current situation, the German group is managing to sell a good number of its BMW vehicles and is counting on markets such as China to stay the course, where sales of its cars are up 31%, compared with 15.7% in the US market, which has been hit hard by the pandemic.
But while many markets are allowing the BMW Group to catch its breath and bounce back in the high-end automotive market, the group says that overall vehicle deliveries and pre-tax profit will show significantly lower figures than last year.
“If the pandemic becomes even more serious and the global economy experiences a perceptible slowdown, the risk exposure could be considerable, especially on the demand side” said the group, which, despite some positive figures, cannot help but be concerned about the unpredictable global events in Europe and the United States affecting its business.
This concern on the part of the group resulted in a 3% drop in the group’s share price listed on the Frankfurt Stock Exchange yesterday at 8:30 am (GMT). This performance impacted the DAX index at -1.6%, the main German stock market index based on the share prices of the 30 largest companies.
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