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BMW third-quarter earnings rebound

BMW third-quarter earnings rebound

Mubasher: BMW's third-quarter (Q3) profit rose by around 10%, driven by Chinese demand for luxury cars, Reuters reported on Wednesday.

The German automaker, meanwhile, warned a new wave of coronavirus infections sweeping Europe and the US posed a considerable risk to its business.

Sales of luxury cars reached a new record in the quarter, but the cautious outlook sent BMW shares lower by 3.1% in early trade.

"After a more stable phase in the economic environment in the third quarter, the pandemic is now clearly regaining momentum,” BMW said.

It added, “If the pandemic takes an even more serious course and the global economy experiences a perceptible downturn, the risk exposure could be considerable, particularly on the demand side.” 

BMW's quarterly pretax profit recovered in the quarter ended on 30 September, rising by 9.6% to EUR 2.46 billion ($2.87 billion), supported by an 8.6% increase in deliveries of luxury cars.

Deliveries of BMW-branded vehicles jumped by 9.8% during Q3-20, largely thanks to a 31% spike in China, which helped offset a 15.7% drop in demand in the US, where the pandemic has hurt sales.

Overall deliveries of high-end vehicles and group pretax profit are predicted to be significantly lower than last year, despite a recovery in demand in some markets, the company said.