Gaishi Automobile News On November 6, BMW Group announced that in the third quarter of this year (July to September), its revenue fell 15.
7% year-on-year to 32.
406 billion euros, of which revenue from the automotive business fell 13.
2% year-on-year to 27.
854 billion euros.
EBITDA fell 61% year-on-year to 1.
696 billion euros, of which EBITDA of the automotive business fell 79.
8% year-on-year to 634 million euros.
The EBITDA profit margin of the automotive business fell to 2.
3% from 9.
8% in the same period last year, well below the target set for 2024 (at least 6%) and the lowest level since the second quarter of 2020.
net profit fell 83.
8% year-on-year to 476 million euros.
, BMW Group’s main profitability indicator fell to its lowest level in more than four years in the third quarter as costly recalls and weak demand in China dragged on profits.
The company has set aside nearly 1 billion euros (US$1.
1 billion) to repair defects in recalled vehicles and has had to temporarily stop delivering hundreds of thousands of high-priced models.
In terms of sales, although BMW Group’s sales fell in all global markets in the third quarter, the company has had some success in electric vehicles.
Global deliveries of pure electric Q3 vehicles such as BMW i4 sedan and iX1 SUV increased by 10% year-on-year.
, In its largest market, China, BMW Group’s sales fell by 30% year-on-year from July to September this year, as consumers reduced their consumption of luxury cars, while China’s local automakers provided more affordable alternatives, and recalls were also the main reason for the decline in sales.
Due to declining sales and rising inventory levels caused by the recall, BMW Group’s free cash flow in the third quarter was negative 2.
48 billion euros, compared with 2.
618 billion euros in the same period last year.
BMW Group’s goal is to reduce inventory levels to the same period last year in the last three months of this year and achieve the expected goal of free cash flow exceeding 4 billion euros for the full year of 2024.
Walter Mertl, chief financial officer of BMW Group, said the company expects demand in China, the world’s largest auto market, to remain sluggish in the fourth quarter.
BMW Group confirmed its adjusted financial forecast for the full year of 2024, predicting a significant drop in pre-tax profit, car deliveries will be slightly lower than last year, and EBITDA margins will be between 6% and 7%.
Photo source: BMW Group, after the release of the above financial report, BMW Group’s share price fell 6.7%. So far this year, the stock has fallen more than 30%.
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