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BMW’s third-quarter results top estimates on strong EV sales, higher prices

BMW AG’s (BMWG) third-quarter results, reported on Wednesday, exceeded market estimates, driven by robust electric vehicle sales and higher prices.

The auto maker reported a 42.4% year-on-year surge in its net profit to EUR 2.58 billion during the quarter.

BMW’s vehicle deliveries dropped 12.2% year-on-year during the third quarter, but still, the company reported a 4.5% year-on-year growth in revenue.

Sales of electric vehicles almost doubled during the nine months to September to nearly 232,000 units in comparison with the same period a year earlier.

“A better product mix and good price setting of new vehicles alongside a stable pricing trend of used vehicles strengthened the financial performance of the business,” BMW said in a statement.

The premium auto maker reported an operating profit margin of 7.8% in its automotive division during the past quarter.

Meanwhile, the German company maintained its full-year EBIT margin forecast of 9.5% to 10.5% for that division.

“We are on track for our full-year forecast and are looking forward,” BMW’s Chief Financial Officer Nicolas Peter was quoted as saying by Reuters.

“We expect that semiconductor supply will be an issue for us beyond 2021.”

As of 8:35 GMT on Thursday the shares of Bayerische Motoren Werke AG (BMWG) were advancing 1.03% (EUR 0.930) on the day, while extending gains from the previous three sessions, to trade at EUR 90.835 in Frankfurt.

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