BMW's Q4 core auto margins beat estimates, dividend falls

BMW Q4 margins: BMW reported a stronger-than-expected margin in its core automotive segment for the fourth quarter, fueled by the full consolidation of its Chinese joint venture BMW Brilliance Automotive (BBA) and improved sales volumes.

The carmaker achieved a margin on earnings before interest and taxes (EBIT) of 9.8 per cent in the quarter, surpassing the company-provided consensus of 8.9 per cent. However, despite the positive performance, BMW announced a reduction in its annual dividend to 6 euros per share, down from 8.5 euros the previous year.

"A positive effect came from the full-year inclusion of the BBA result and from the net effect of volume, mix and pricing, driven by the higher sales volume and the higher share of the top end as well as BMW M vehicles," the German premium carmaker said in a statement.

In terms of financials, group revenue climbed by 8.7 per cent in the October-December period to 42.9 billion euros ($46.89 billion), while net profit surged by 20 per cent to reach 2.6 billion euros, both exceeding consensus estimates.

Despite the positive financial results, shares in BMW declined by 3 per cent following the announcement.

(With Reuters inputs)