Wednesday March 31, 2021
Asia results “impressive”
BMW sees itself on the track
The Munich carmaker shifts up a gear again. Strong numbers are coming from Asia, market shares are increasing in Europe, and good prices are achievable in the USA. In addition, the company expects more encouragement from the capital market again.
Thanks to a booming Asian business in the midst of the Corona crisis, the car manufacturer BMW sees itself on a growth path. “Overall, we are well on the way to achieving our main objective for the current year,” said BMW CFO Nicolas Peter. Sales will grow at the upper end of the promised range of five to ten percent.
With the goal of an operating return of six to eight percent, BMW is “well on the way” in the automotive business. That will also be seen with free cash flow. The results in Asia are “impressive”.
Peter was confident that BMW would not only achieve its long-term return target of eight to ten percent, but would also maintain this level thereafter. This should succeed despite the increasing share of e-cars in sales, on which carmakers earn less in the first few years than on vehicles with combustion engines.
The markets in Asia not only developed positively in terms of sales figures, “but also in terms of the quality of the results,” said Peter. In the US leasing market, the Munich-based company benefited from the fact that used car prices were at a high level. New car sales are also doing well. In Europe, new registrations fell overall. But BMW is gaining market share because sales are shrinking less sharply. In contrast to the lockdown a year ago, incoming orders did not collapse.
Looking at the carmaker’s development on the stock exchange, Peter said that BMW shares are still undervalued. The course is now moving in the right direction. “Overall, I have the impression that the capital market is again focusing more strongly on traditional manufacturers and sees that we are well on the way with the important future topics.” BMW wants to score with investors “with sustainable performance” and does not rely on short-term fluctuations in the share price. With this, Peter was indirectly referring to Volkswagen, which attracted the attention of investors with numerous announcements in the field of electromobility, whereupon the share shot up sharply.