BMW reported its net income increased by 22.9% in the third quarter, continuing a trend that saw the company’s net profit grow by 60.7% in the first nine months of 2022 despite continuing supply chain disruptions brought on by semiconductor shortages and ware in the Ukraine.
Officials had a simple reason for success.
“Compelling products are the best answer to a challenging environment. They give us stability in the present and create growth prospects for the future,” said Oliver Zipse, Chairman of the Board of Management of BMW AG on Thursday.
Flexibility helps BMW
“Our solid third-quarter results underline that flexibility creates resilience. Especially under volatile conditions, our globally balanced footprint and technology-open approach are proving to be a key success factor. That is why, after nine months, we are on track to meet our targets for the year,” Zipse continued.
“The market success of our fully-electric models, in particular, means we can look forward to the coming months with confidence.”
The significant growth in sales of fully electric and electrified vehicles is also reflected in the decrease in carbon dioxide emissions in the EU new vehicle fleet.
The BMW Group could well outperform its previous target and based on current data, reduce its European Union fleet emissions by 5%-10% year-on-year. A slight reduction of up to 4.9% had previously been planned, BMW reported.
EV sales double
Bolstered by growing demand, the company delivered more than 128,000 electric vehicles to customers by the end of September, more than twice the number for the same period of 2021.
In the financial report released this week, BMW’s net profits for the first nine months totaled $16.2 billion, compared to $10 billion, including $3.1 billion in the third quarter.
Due to the full consolidation of BBA, Automotive Segment revenues increased by 26.5% in the first nine months of the year to $89 billion. In the third quarter, revenue increased 42.7 to $32.2 billion.
The high-value product mix, solid pricing for new vehicles and the sustained stable trend in used car prices all continued to have a positive effect, BMW said in the financial report.
In the first nine months of the year, and particularly the third quarter, rising costs for materials and logistics impacted the segment’s EBIT. This primarily reflects the limited availability of semiconductors and supply chain disruptions, as well as higher raw material and energy prices.
The segment’s earnings before financial result for the first nine months totaled dropped 3% to $7.5 billion, but increased 63.6% to $2.8 million in the third quarter producing an 8.9% margin for the period from July to September 2022 quarter.