BMW posted a 44 percent increase in third-quarter earnings, thanks to the improved demand for the 5-series sedan and the X3 sport-utility vehicle. Its earnings before interest and taxes increased from 1.19 billion euros last year to 1.72 billion euros or $2.35 billion, the company disclosed on Thursday. Profit exceeds the 1.58 billion-euro average estimate of 18 analysts that Bloomberg has surveyed.
Revenue rose 3.8 percent to 16.5 billion euros. For high-end automakers, growth has been sluggish from the record pace in the first half while the debt crisis in Europe unsettles consumers.
The parent of Mercedes-Benz, Daimler AG, recorded its first decline in earnings since the third quarter of 2009, as the company was adversely affected by expenses for new models. BMW has not changed its current estimate for sales and profit in 2011, which was said to be "significantly higher" than last year's.
The manufacturer of BMW, Rolls-Royce and Mini vehicles is aiming an EBIT margin at its vehicle unit of at least 10 percent for the year, with sales estimated to hit a record of at least 1.6 million units. The company intends to achieve an EBIT margin of 8 percent to 10 percent beginning 2012.
Through the previous quarter, growth in vehicle sales slumped to 9 percent from 18.5 percent in the second half as the 3-series and 1-series models get renewed and the old X5 sport-utility unit faces the refurbished Mercedes-Benz M class. Based on BMW data, deliveries of all three models dropped in the period.
When BMW first introduced the X3 in 2004, it was the first time the market had seen a concept which was a premium yet small Sports Activity Vehicle that offered unmatched driving dynamics with all-road capability. It did not come as a surprise that the X3 became one of the brand’s best sellers not only in the U.S. market but in Europe as well. Estimates show that at least 600,000 units of the first generation of the X3 have been sold with 150,000 of these in the U.S. alone. As a result, other automakers have decided to participate in what may now be the most contested class. Building upon the success of the first generation, the second generation of the X3 continued to develop the core competencies that the previous model was celebrated for but this time, it put in new technologies with the hopes of setting new standards when it comes to efficiency, agility, and comfort.
The new second generation BMW X3 builds on the success of the original by developing its core competencies while adding new technology to establish new benchmarks for agility, efficiency and comfort. Defining its profile for example is its very own interpretation of the design features of the BMW X.
By having short overhangs on both the front part and the rear end with the wheel arches being more powerfully flared, it helps highlight the strong character of this Sports Activity Vehicle.
In addition, helping put emphasis on the silhouette’s dynamic appearance are the three characteristic lines. The first is the upper contour line, a standard BMW feature, which starts at the door handle and slowly rises to the region of the front wheel arch before going slowly to the rear.
Following this character line are two extra subtle lines just on top of its wheel arches. In terms of design, the exterior shows agility, ruggedness, and elegance. On the front, the BMW kidney grille has been tilted a bit forward.
When combined with the large headlight assembly, this results in the front apron having a powerful appearance. Helping with this strong presence is the hood which contains six contour lines that flow down and meet the kidney grille. As expected from a BMW SAV, the design includes the triangular light pattern, which is due to the round fog lamps and the twin round headlights.
Accentuating the top portion of its headlight assembly is a chrome trim which gives it that focused design standard of any BMW model. The Corona Rings are still there and remain to be illuminated and thus also act as the daytime running lights.
Should a customer decide to go for the Xenon headlights, which is offered as an option, both the daytime running lights and Corona Rings will be illuminated using bright white LEDs. BMW revealed that the X3 will be manufactured at its expanded facility located in Spartanburg, South Carolina. The X3 is scheduled to be delivered to BMW Centers towards the end of 2010.