BMW's road to recovery

Note: This section contains information in English only.
Source: Dukascopy Bank SA
BMW Group has confirmed its adjusted guidance for 2024, following a tough third quarter with issues related to its braking system and weak demand in China. Despite these challenges, the company expects stronger deliveries in the fourth quarter, focusing on reducing inventory and addressing delays. BMW saw strong growth in electric vehicle (BEV) sales, with a 19.1% market share in Q3 and a 10.1% increase in BEV deliveries compared to last year.

The BMW brand grew by 7.6% in Europe, while sales and market share in the US remained stable. The company aims to improve earnings in Q4, despite high upfront investments in new products and technology, especially for its upcoming electric vehicles.



In Q3, financial results were impacted by the braking system issues, with revenues dropping 15.7% to €32.4 billion. Operating profit and net profit also decreased, and the Automotive Segment's EBIT margin fell to 2.3%. Free cash flow was negative due to high spending and more inventory.

Looking ahead, BMW expects slightly lower vehicle deliveries for the year, with an EBIT margin of 6-7% and a return on capital employed (RoCE) of 11-13%. The Financial Services Segment is projected to see a return on equity (RoE) of 15-18%. In the Motorcycles Segment, deliveries should be like last year. Despite these challenges, BMW is continuing to invest in its future growth with a strong financial position.

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