BMW's Automotive Segment 4Q, 2020 Free Cash Flow Beats Expectations
By Giulia Petroni
BMW AG said Wednesday that its automotive segment's free cash
flow for the fourth quarter and full year of 2020 beat
expectations, according to preliminary results.
The German luxury car maker said free cash flow in the segment
was around 2.8 billion euros ($3.40 billion) in the fourth quarter,
compared with EUR1.5 billion in the previous year period. Free cash
flow was around EUR3.4 billion in the full year.
The beat was driven by a positive operating result in the
segment, a lower-than-expected consumption of warranty provisions
due to lockdown measures, higher down payments received from BMW's
dealerships and a focused management of inventories.
BMW said the segment's positive operating result is attributable
to better-than-expected results in the pre-owned car market, which
led to a return on equity in the segment only slightly below the
The automotive segment's earnings before interest and taxes
margin for 2020 is at the upper end of the 0% to 3% range, the
company said, while the group's earnings before taxes are in line
with the outlook and market expectations.
Write to Giulia Petroni at email@example.com
(END) Dow Jones Newswires
January 27, 2021 12:53 ET (17:53 GMT)
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