BMW reported earnings before interest and taxes of 1.9 billion euros ($2.81 billion) for the first quarter, an increase of more than four times from the 449 million euros that the company achieved during the same period last year. Moreover, the company’s first quarter profit surpassed the 1.54 billion-euro average of the 14 analysts’ estimates that Bloomberg has compiled.
In addition, the company recorded total sales of 16 billion euros, which is a 29 percent increase from a year earlier. The favorable growth in China’s economy as well as the rebound in spending in the United States are identified as contributing factors for the record demand for luxury vehicles from Volkswagen AG's Audi, BMW, and Daimler AG's Mercedes-Benz.
As for VW, it revealed last week that its first-quarter EBIT increased three times due to the market demand in China for the Audi models. Similarly, operating profit for Daimler increased 71 percent with the sales of the Mercedes S class as contributing factors.
BMW’s chief executive officer, Norbert Reithofer, stated that the company has sold more vehicles in a first quarter than ever before. It has generated record earnings, he said in a statement. Moreover, he disclosed that the BMW group is on track in achieving earnings records for the whole year as well as new sales volume.
Specifically, the company aims to sell at least 1.5 million units -- Rolls-Royce, BMW, and Mini cars -- for this year, outperforming the 1.46 million it achieved in 2010. Moreover, the company’s net income for the first quarter increased almost four times to 1.21 billion euros.
Sales of the overhauled X3 sport-utility vehicle increased 94 percent to 22,700 units, while deliveries for the revamped 5-series sedan increased more than 100 percent to 85,400 units. The company sets its goal to increasing its vehicle manufacturing division’s operating profit margin for this year from the 8 percent of sales last year while it competes with Audi in terms of profitability.