FRANKFURT (Reuters) – BMW BMWG.DE on Monday said rebounding markets helped the German carmaker to deliver higher-than-expected free cash flow in the automotive segment during the third quarter.
Free cash flow amounted to 3.07 billon euros ($3.61 billion) in the third quarter, up from 714 million euros ($840.16 million) in the year-earlier period, the carmaker said late on Monday.
“This was due in particular to a faster recovery in several markets, which led to higher sales growth,” BMW said in a preliminary earnings release which was published ahead of the company’s scheduled quarterly earnings on Nov. 4.
An optimisation of working capital and a reduction of fixed costs and capital expenditure had helped to bolster earnings, but earnings forecasts for the individual segments and the multi-brand carmaking group remain unchanged.
“Economic disruption caused by the coronavirus pandemic continues to significantly impair forecasting and leads therefore to considerable uncertainty in providing an accurate outlook,” BMW said.
Reporting by Edward Taylor; Editing by Chris Reese and Lisa Shumaker