By Rachel More
BERLIN (Reuters) -German carmaker BMW boosted its core profit margin in the third quarter after further cuts to research and development spending on electric vehicles, while banking on its new all-electric series to boost growth amid stiff competition in China.
BMW on Wednesday reported an operating margin of 5.2% for its automotive unit in the July to September period, up from 2.3% a year earlier and above the 4.9% forecast in a company-provided poll of analysts.
"In the third quarter,
we once again proved that our business model is robust and resilient," BMW CEO Oliver Zipse said.
After revising down its full-year guidance last month due to tariff costs and slow growth in China, the group said it continued to expect the margin for cars to land in the forecast range of 5 to 6%, slipping from 6.3% in 2024.
The group said it expected the first model from the all-electric 'Neue Klasse' product offensive to drive growth in 2026, but that it had "transitioned" from last year's record investment in its EV portfolio.
"We are reaping the benefits of having invested in the future early, with the peak now already behind us," CFO Walter Mertl said, adding that he expected further cost reductions in the fourth quarter.
Group earnings before interest and tax were in line with expectations at 2.3 billion euros ($2.68 billion), up by a third year-on-year following a weak performance in the third quarter of 2024 when brake issues hit sales.
Quarterly group revenues missed expectations slightly at 32.3 billion euros.
($1 = 0.8575 euros)
(Reporting by Rachel More; Editing by Ludwig Burger and Jan Harvey)
