2011 5-Series beats Audi, Mercedes-Benz and helps Bmw post record profit

Article by Christian Andrei, on May 4, 2011

BMW reported today a 4,462-euro profit per vehicle on average, which is a record high for the company in its entire 95-year history, compared with 2,981 euros at Volkswagen AG's Audi and 4,145 euros at Daimler AG's Mercedes-Benz.

For the first quarter of 2011, the company recorded an increase in operating margin to 11.9 percent from the 2.7 percent reported on the same period last year. The company’s profit outperformed the average estimates of analysts with the surging demand for overhauled X3 sport-utility vehicle and revamped 5-series sedan.

Specifically, the company’s earnings before taxes and interest increased more than four times to 1.9 billion euros ($2.81 billion), which beats the average estimate of 1.54 billion euros that Bloomberg had compiled from 14 analysts.

According to analyst Arndt Ellinghorst at Credit Suisse in London, BMW “seems like” it is playing a different league as of the moment.

Norbert Reithofer, BMW’s chief executive officer, is pushing the company to strengthen profitability to maintain its independence as well as defend itself from Audi, which is targeting to outperform BMW as the market leader in luxury vehicles by 2015.

The company has exited the Formula One race circuit, reduced employees as well as lessened expenditures on parts and supplies by at least 4 billion euros since 2008.

The positive economic growth in China and the rebound in spending in the United States are helping record demand for luxury vehicles from Audi, Mercedes and BMW.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries