By Giulia Petroni
BMW AG said Wednesday that its automotive segment’s no cost dollars movement for the fourth quarter and complete year of 2020 beat expectations, in accordance to preliminary effects.
The German luxurious automobile maker said free of charge dollars flow in the segment was all over 2.8 billion euros ($3.40 billion) in the fourth quarter, compared with EUR1.5 billion in the preceding calendar year period of time. Absolutely free hard cash move was around EUR3.4 billion in the entire calendar year.
The beat was driven by a optimistic operating outcome in the section, a reduced-than-predicted consumption of guarantee provisions due to lockdown measures, bigger down payments obtained from BMW’s dealerships and a targeted management of inventories.
BMW claimed the segment’s positive functioning result is attributable to far better-than-expected outcomes in the pre-owned vehicle industry, which led to a return on fairness in the segment only a little underneath the preceding year.
The automotive segment’s earnings prior to interest and taxes margin for 2020 is at the upper finish of the % to 3% vary, the organization said, while the group’s earnings just before taxes are in line with the outlook and sector expectations.
Compose to Giulia Petroni at [email protected]
(Conclusion) Dow Jones Newswires
January 27, 2021 12:53 ET (17:53 GMT)
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