FRANKFURT: BMW said on Wednesday third-quarter profit rose almost 10 percent thanks to rebounding Chinese demand for luxury cars and it reiterated its outlook, even as a wave of coronavirus infections continues to sweep Europe and the United states.
Like rival Mercedes, BMW’s quarterly pretax profit recovered in the third quarter, rising 9.6 percent to $2.87 billion, lifted by an 8.6 percent rise in deliveries of luxury cars.
The automotive EBIT (earnings before interest and tax) margin rebounded to 6.7 percent, from minus 10.4 percent in the second quarter and 6.6 percent a year earlier, despite a 50 percent jump in sales of lower-margin electric and hybrid cars during the same period.
BMW-branded vehicles saw a jump of 9.8 percent in deliveries during the quarter, mainly thanks to a 31 percent spike in China, which helped offset a 15.7 percent drop in demand in the United States, where demand was being hit by the pandemic.
BMW reiterated it expected to achieve an EBIT margin of between 0 percent and 3 percent for the automotive segment in 2020.
Despite a recovery in demand in some markets, overall deliveries of high-end vehicles as well as group pretax profit are expected to be significantly lower than last year, BMW said.
“The level of risk due to the negative impact of the pandemic is assessed as high. After a more stable phase in the economic environment in the third quarter, the pandemic is now clearly regaining momentum,” the carmaker said.
“If the pandemic takes an even more serious course and the global economy experiences a perceptible downturn, the risk exposure could be considerable, particularly on the demand side.”
BMW third-quarter profit rebounds on China demand for luxury cars
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BMW third-quarter profit rebounds on China demand for luxury cars
- Like rival Mercedes, BMW’s quarterly pretax profit recovered in the third quarter
- ‘The level of risk due to the negative impact of the pandemic is assessed as high’
Canada deepens investment ties with Qatar, expands economic engagement with Egypt
RIYADH: Canada and Qatar moved to formalize a more in-depth and investment-focused partnership during an official visit by the country’s Prime Minister Mark Carney to Doha.
The visit was the first by a sitting Canadian leader, with both governments agreeing to elevate bilateral ties through new economic, security, and financial frameworks.
At the center of the meeting was an agreement to launch a foreign ministers–level strategic dialogue and advance a pipeline of trade, investment, and defense cooperation initiatives aligned with Canada’s diversification priorities and Qatar National Vision 2030.
Several memorandums of understanding were signed, including accords on joint economic cooperation, information technology, and security collaboration for the 2026 FIFA World Cup, which Canada will co-host.
The visit underscored the rapid expansion of Qatar–Canada relations, which have gained momentum following high-level exchanges in recent years, including a 2024 visit by Sheikh Tamim bin Hamad Al-Thani to Ottawa.
Both sides emphasized trade and investment as a central pillar of the relationship, with Qatar committing to significant strategic investments in Canadian nation-building projects and the North American nation pledging to send a delegation of investors, including major pension funds, to explore opportunities in Qatar.
“Qatar is an effective, expansive, and increasing diplomatic force in the world today. They are a critical partner to Canada in many shared pursuits of peace and stability, from Ukraine to the Middle East,” Carney said.
“It is a relationship forged over many years by profound acts of friendship, including the Qataris’ effort to evacuate more than 200 Canadians from Afghanistan in 2021. Now we’re elevating our relationship — with an ambitious, new strategic partnership across trade, commerce, investment, AI, and defense — to deliver greater stability, security, and prosperity for our peoples,” he added.
As part of the economic agenda, the two governments agreed to conclude negotiations on a Foreign Investment Promotion and Protection Agreement by summer 2026 and to begin talks on a Double Taxation Agreement.
They also committed to expanding bilateral air services and establishing a Joint Economic Commission to support cooperation across sectors, including mining, agriculture, telecommunications, transportation, and science.
Financial cooperation featured prominently alongside the diplomatic talks.
Sheikh Bandar bin Mohammed bin Saoud Al-Thani, governor of the Qatar Central Bank and chairman of the Qatar Investment Authority, met with Canada’s Finance Minister Francois-Philippe Champagne to discuss cooperation in banking and finance and ways to deepen institutional collaboration.
Separately, Canada’s economic engagement in the region extended to Egypt, where Cairo’s Minister of Foreign Affairs, Immigration, and Egyptian Expatriates Affairs, Badr Abdelatty, met with a delegation of business leaders from the North American country.
The talks focused on strengthening trade and investment ties, with Egyptian officials encouraging Canadian companies to expand investments in energy, agriculture, and water resources.
According to Egypt’s Foreign Ministry, Abdelatty highlighted recent economic and financial reforms aimed at improving the investment climate and reaffirmed government support for the Egyptian-Canadian Business Council in attracting Canadian capital and boosting Egyptian exports.
The discussions were built on outcomes from political consultations held in April, which included an Egyptian business delegation’s visit to Ottawa.
