BMW hits earnings target helped by pricing, China consolidation

BMW's (BMWG.DE) core carmaking business hit its 2022 earnings target, the company said on Thursday, helped by strong pricing and consolidation of its China joint venture.

Group revenue rose 28% to 142.6 billion euros ($150.66 billion) versus a Refinitiv SmartEstimate of 141.6 billion.

Its autos business reported an 8.6% margin on earnings before interest and taxes (EBIT) of 10.6 billion euros and cash flow of 11.1 billion euros.

Almost half of the latter came from a cash contribution from Chinese joint venture BMW Brilliance Automotive (BBA).

It proposed a dividend to shareholders of 8.50 euros, up from 5.80 a year earlier.

BMW said last February it would pay 3.7 billion euros to take majority control of BBA after securing the necessary licence from Beijing, increasing its stake to 75% from 50%.

The company said over the year it had faced higher costs of sale, including materials, commodities, logistics and refinancing.

Its shares were down 3.3% at 1222 GMT lagging the European autos index which was down 1%.

BMW's operations beyond automobiles include motorcycles and financial services.

($1 = 0.9466 euros)