Business News Third quarter of 2020: BMW AG's automotive segment exceeds market expectations
The preliminary free cash flow for the automotive segment of BMW AG in the third quarter 2020 amounts to EUR3,065 million and thus exceeds current market expectations. In the previous year the amount was EUR714 million.
This amount above expectations was in particular due to a faster recovery in several markets, which led to higher sales growth. In addition, a focused management has led to an optimization of working capital and a further reduction of fixed costs and capital expenditure. The impact of this development on the free cash flow for the automotive segment for the full year will be communicated with the release of the quarterly statement to September 30, 2020.
The previous earnings forecasts for the individual segments and the 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 AG will publish further details on the results of the third quarter 2020 on November 4, 2020.The definition of free cash flow is provided on page 244 in the BMW Group Annual Report 2019. Working capital comprises inventories as well as trade receivables and trade payables.