BMW today posted a surprise increase in third-quarter operating profit as strong sales in higher-margin core European markets outweighed weak demand in China.
BMW's quarterly sales in Europe, destination of over 40% of its deliveries, were up 6.9% to 545,062 cars, leading the group to affirm its goal of beating last year's record 2.12 million sales.
Earnings before interest and tax (EBIT) rose 4.3% to 42.354 billion, BMW said, matching the €2.353 billion top-end forecast in a Reuters poll.
The world's biggest luxury carmaker said it still expects a profit margin in the automotive division of 8-10% this year, compared with 9.6% in 2014, as well as higher sales and pre-tax profit.
But the Munich-based group cited a raft of headwinds including heightening competition in the US, upfront spending on new products and technology as well as rising personnel costs and slowing demand in China.
