dpa-AFX/GNA – BMW AG said that preliminary automotive free cash flow for the fourth quarter and the full year 2020 was above market expectations.
It was driven mainly by positive operating result in the automotive segment; continued focused management of inventories; lower than expected consumption of warranty provisions as a result of lock-down measures; higher down payments received from BMW Group dealerships, most notably in China in line with the positive market development and in Britain relating to Brexit.
The company noted that the positive operating result of the Automotive segment in the fourth quarter is partially due to better than expected remarketing results in the pre-owned car market.
It also has a positive effect in the Financial Services segment, leading to a Return on Equity for the segment which is only slightly down on prior year as opposed to a moderate decline as indicated in the current outlook.
The BMW AG’s preliminary automotive segment free cash flow for the fourth quarter 2020 rose to about 2.8 billion euros, from last year’s 1.5 billion euros, while it increased to about 3.4 billion euros in the full year 2020 from 2.6 billion euros in the previous year.
The company noted that EBIT margin in the Automotive Segment for the full year 2020 is at the upper end of the 0 – 3 per cent corridor, due to the faster recovery in many markets in the second half of 2020 and consequent cost management.
The Group EBT remains within the outlook and in line with market expectations.