On Monday, local time, the automaker BMW Group released a first-quarter earnings forecast on its website, showing a strong recovery in the company's performance. Affected by the news, U. S. stocks intraday BMW ADR rose 4.62%, closing down to 0.40%.
In the unannounced results disclosure, BMW said sales growth was recorded in all major Q1 markets and brands, particularly in China. In addition, factors such as positive market prices and a large demand for used cars have also driven the Group's major financial data to exceed market expectations.
According to the preliminary first-quarter results, the automobile sector Q1 made a profit of 2.236 billion euros before interest and tax, compared with 229 million euros and-310 million euros in the first quarter of 2019, respectively, and Q1's gross profit margin before interest and tax also rebounded to 9.8 percent from 1.3 percent in 2020. Q1 pre-tax profit of the financial services sector was 787 million euros (484 million euros in 2020 and 627 million euros in 2019). Group profit before interest and tax was 3.757 billion euros, up 37% from a year earlier.
BMW also said that positive operating performance and a continued focus on working capital management have brought the free cash flow of the Q1 automotive division to 2.522 billion euros this year, compared with-2.218 billion euros in the same period last year.
BMW's performance forecast once again confirms the logic of the recovery of car companies' business. Last week, Daimler also said it was driven by a surge in demand for the Mercedes-Benz brand in China and rising prices that contributed to better-than-expected quarterly profits. According to the schedule, BMW Group will release full quarterly data on May 7.
