BMW beat expectations with third-quarter net profits rising by 16% to €1.29 billion euros ($1.63 billion), despite a tough climate. Revenue surged 14% to €18.82 billion, fueled by sales in China and a 9% rise in the number of vehicles sold.
Chief Executive Norbert Reithofer said in a statement.
We have had a good third quarter, setting new sales volume, revenues and earnings records in the face of a challenging market environment. Like the rest of the sector, we are now beginning to feel some headwind.
So far this year, the world’s largest luxury car maker has outsold rival Audi, while last month, rival Daimler rattled the market by cutting earnings forecasts for the year. BMW says its still on track to hit sales records with its BMW, Mini, and Rolls-Royce brands.
Sales in China increased 30%, while European sales rose a modest 2.6%, and sales fell back home Germany.
With headwinds coming, BMW is looking for cover outside of Europe, in Latin America in particular. It is investing €200 million in a facility in Brazil where it plans to produce 30,000 vehicles a year. Meanwhile it’s cutting production in Europe, and shifting sales of cars meant for Europe to the US and Asia.