BMW somewhat raised its profit outlook relying on demand for new models and slashing development spending even as third-quarter revenues fell on technology expenses.
The automaker on Tuesday anticipated a 5-10 percent gain in pretax profit, raising a former forecast of 1-5 percent.
New vehicles are adding fuel to demand, including its redesigned 5 Series, BMW’s second best-selling model, and an updated 4 Series which pertained to market this year. The revamped X3 sport-utility vehicle hits dealers this month.
The automaker, which has actually been pushing cuts in development costs by restricting parts complexity, stated it still expects an increase in shipments to a new record in 2017.
BMW is “keeping (its) promises and raising the bar for our own enthusiastic targets,” Chief Executive Harald Krueger stated.
Still, growing costs on electric and self-driving technologies keeps weighing on outcomes.
Quarterly pretax profit dropped 5.9 percent to 2.42 billion euros ($2.81 billion), near the 2.41-billion-euro low-end projection in a Reuters poll of bank and brokerage experts.
BMW prepares to provide a convertible version of the electric i8 Roadster next year as part of efforts to extend battery-powered offerings to 25 models by 2025, about half of them fully-electric.
The automaker’s operating profit margin slipped to 8.3 percent in the July-to-September quarter from 8.5 percent a year previously, within its 8-10 percent target range however below Audi’s 8.9 percent and the 9.2 percent at Mercedes-Benz.
BMW pared expectations for earnings gains this year, forecasting sales in core automobile operations to increase by between 1 and 5 percent in the middle of currency headwinds and political volatility, decreasing previous guidance of 5-10 percent.