BMW’s annual auto margins slightly lower than expected, cuts dividend By Reuters

© Reuters. FILE PHOTO: The logo of German automaker BMW is seen in Brussels, Belgium, June 1, 2023. REUTERS/Yves Herman/file photo

(Corrects title and first and second paragraphs to show that margins were in 2023 (not ‘quarter’) and slightly lower (not higher) at 9.9% (not 8.9%). (Edited to)

(Reuters) – BMW on Thursday reported slightly lower-than-expected full-year margins in its core auto segment despite reporting higher sales for 2023.

The automaker’s earnings margin before interest and taxes (EBIT) was 9.8% in 2023, compared to a consensus estimate of 9.9% provided by the company.

The company reduced its annual dividend from €8.5 to €6 per share.

“Including the full-year BBA results, we saw a positive net effect on volume, mix and price, driven by higher volumes and an increased share of our top-of-the-line vehicles as well as BMW (ETR:) M vehicles,” the German premium said. the automaker said in a statement.

Group sales rose 8.7% from October to December to 42.9 billion euros ($46.89 billion), while net profit rose 20% to 2.6 billion euros, both beating consensus.

According to the results, BMW stock prices fell 3%.

(1 dollar = 0.9150 euros)