BMW first-quarter profit rises fourfold to 1.21bn

BMW first-quarter profit rises fourfold to 1.21bn
6th May 2011

 

German luxury carmaker BMW says first-quarter net profit rose almost fourfold to €1.21bn (£1.09bn) as sales climbed all around the world, but particularly in China.

Profits were up from last year's €324m. Revenues grew 29% to €16.04bn.

BMW, which includes the Mini and Rolls-Royce brands, saw especially big sales increases in Asia, where it sold 53% more cars – including a 72% jump in China reports the guardian.co.uk

Wednesday's results confirmed a strong quarter for Germany's export-oriented carmakers, whose luxury products are selling strongly in China's booming economy. First-quarter earnings for Daimler, maker of Mercedes-Benz cars, nearly doubled to €1.18bn and Volkswagen, maker of the Audi luxury brand, saw profits more than triple to €1.7bn.

For BMW, sales also grew significantly in Europe, despite an uneven recovery there, and in North America.

BMW sold 13% more cars in Europe, which remains its biggest market with 200,000 vehicles out of the company's overall sales of 383,000. The European luxury segment has held up better than the car market as a whole, which shrank slightly as scrapping incentives expired in some countries and several countries struggle with debt crises or weak growth.

A strong model mix helped earnings, as several high-margin vehicles such as its X3 4x4 and 5-series saloon car showed large unit sales increases. Two other high-margin products, the 7-series and the X5, showed more modest increases.

BMW's profit of €1.84 per share beat analyst estimates of €1.55, and the shares rose 1.7% to €64.45 in morning trading German time.

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