BMW profit races back but second wave fears abide
Car giant BMW’s profit came roaring back in the third quarter as growing Chinese demand for its cars helped the firm recover from the coronavirus pandemic.
Profit at the German auto company rose 9.6 per cent to €2.5bn in the period, up from 2.2bn last year.
BMW was boosted by a 31 per cent sales boost in China, which offset shrinking demand in other countries.
In total, the firm saw revenue shrink just 1.4 per cent in the period, falling to €26.3bn.
For the year as a whole, BMW said that earnings are set to shrink by more than 10 per cent.
Despite the improved performance, the company warned that the prospect of a second wave of infections posed a “considerable” threat.
“After a more stable phase in the economic environment in the third quarter, the pandemic is now clearly regaining momentum”, it said in a statement.
“In light of the containment measures required as well as the economic impact, a high level of uncertainty remains.
“If the corona pandemic takes an even more serious course and the global economy experiences a perceptible downturn, the risk exposure could be considerable, particularly on the demand side.”
Amid the height of the first wave of cases, which saw factories and showrooms shuttered across Europe, BMW posted a €666m loss.
Shares declined 1.8 per cent this morning on the back of the carmaker’s warnings.