BMW said its auto business generated much more cash than expected in the third quarter, joining rival Daimler in posting surprisingly positive preliminary earnings.
Automotive free cash flow in the three months ended in September was 3.07 billion euros ($3.6 billion), BMW said in a statement on Monday. That’s up from 714 million euros a year ago and exceeds market expectations.
Several markets recovered faster than anticipated, leading to sales growth, and BMW also cut costs during the quarter.
BMW's initial results and commentary mirror the situation at Mercedes-Benz maker Daimler, which reported better-than-expected preliminary earnings and cash flow last week.
BMW said its earnings forecasts remain unchanged. The company will release complete details on its third-quarter results Nov. 4.
"Economic disruption caused by the coronavirus pandemic continues to significantly impair forecasting and leads therefore to considerable uncertainty in providing an accurate outlook," BMW said.
Reuters contributed to this report