BMW profits well from combustion engines - and invests in the "New Class"

The automaker BMW worked more profitably in the past year thanks to price increases and a shift in demand towards more expensive models. Meanwhile, the Bavarians also invested more and funneled more money into research and development. However, the DAX-listed company did not provide an outlook for the new year. Recently, there have been indications in the industry that the environment is deteriorating due to high interest rates and a challenging economic situation. The stock fluctuated significantly, most recently falling by 1.9 percent. While revenue climbed by 9.0 percent to 155.5 billion euros in 2023, owing to increased sales, operating profit before interest and taxes rose more sharply—by nearly a third to 18.5 billion euros, as the DAX-listed company announced on Thursday in Munich. Acquisition effects also contributed to this.

The operating margin in automotive manufacturing, the most important division, rose by 1.2 percentage points to 9.8 percent. Analysts had anticipated a slightly better figure. BMW attributed this to a seasonally higher cost burden in the final quarter. In the financial services business, declining resale prices of lease returns had a negative impact. The trend towards lower marketing returns for used cars is expected to continue in 2024, it said.