By David Sachs


BMW hit a key annual margin target but its key automotive unit missed earnings expectations in the fourth quarter.

The German luxury-car maker said Thursday that earnings before interest and taxes in the automotive segment--BMW's key division--rose to EUR3.17 billion euros ($3.47 billion) from EUR2.93 billion a year earlier. BMW credited an increase in deliveries and the full integration of sales from its Brilliance Automotive joint venture in China.

Still, the automotive division's EBIT trailed analyst expectations of EUR3.25 billion, according to a FactSet poll. For the year, the company's automotive EBIT margin landed at 9.8%, in line with its target of 9% to 10.5%. Costs of EUR1.4 billion related to the consolidation of Brilliance weighed on results, BMW said.

BMW proposed a lower dividend of EUR6.00 per common share, down from EUR8.50 in 2022.

Group earnings before interest and taxes reached EUR4.41 billion in the fourth quarter compared with EUR3.50 billion a year earlier. The result beat analyst expectations of EUR3.94 billion, according to a FactSet poll. For the year, BMW posted a pretax earnings margin of 11% compared with 16.5% in 2022.

Revenue for the quarter jumped 8.7% EUR42.97 billion as quarterly deliveries rose 10%, BMW said. The sales figure beat forecasts of EUR41.37 billion, according to the Visible Alpha consensus.

BMW said it will release full-year guidance at its annual meeting on March 21.


Write to David Sachs at david.sachs@wsj.com


(END) Dow Jones Newswires

03-14-24 1018ET