BMW AG logged a 17-percent jump in earnings before interest and tax (EBIT) in the third quarter of 2014 to EUR2.26 billion ($2.83 billion). The carmaker saw the profit margin at its automotive division grow to 9.4 percent of sales from 9 percent in the same period in 2013. BMW also posted a 4.5-percent surge in group revenues in the third quarter to EUR19.6 million, thanks to higher sales volume.
With the encouraging third-quarter results, BMW reiterated its full-year forecast of a "significant" increase in pretax profit. BMW chief executive Norbert Reithofer said in a statement that the carmaker managed to continue performing well both in the third quarter and in the first nine months of 2014 “within an increasingly challenging environment."
Group deliveries – including BMW, Mini and Rolls-Royce brands – jumped 6 percent in the third quarter to 509,669 units. The BMW brand saw its sales surge 7 percent, thanks to strong demand for X1, X4 and X5 SUVs.
The Mini brand, meanwhile, saw its sales stay flat at 75,633 units, although its full-year volume might return to the same level of last year as boosted by the new Mini 5-door. Rolls-Royce saw its global deliveries climb 8 percent to 891 units.
BMW also disclosed that it has sold 10,199 i3 electric cars by end of September. For the first nine months of 2014, BMW group deliveries surged 5.3 percent to 1.53 million cars. BMW saw new car sales improve in all regions --including Europe, Asia and the United States – despite seeing a 7.5-percent sales dive for the Mini brand in the January-September period.
BMW is expecting to top 2 million in sales this year. Arndt Ellinghorst, head of automotive research at Evercore ISI Autos, remarked that BMW continues to deliver “very strong earnings,” adding that the outlook for the rest of 2014 remains very encouraging.