BMW Group hikes 4th quarter EBIT to EUR1.95 million

Article by Christian A., on March 14, 2014

BMW Group declared a surprise hike in earnings before interest and taxes in the fourth quarter of 2013 to EUR1.95 billion ($2.72 billion) from EUR1.87 billion in the same period in 2012. The figure topped the EUR1.83 billion average of 10 analyst estimates as surveyed by Bloomberg. BMW saw its fourth-quarter revenue drop 2 percent to EUR20.2 billion.

"We forecast further sales volume growth in the current year which will again bring us a new all-time high," BMW chief executive Norbert Reithofer said in a statement. BMW is pouring more investments in technology and expanding production to stave off challenges posed by rivals Audi and Mercedes-Benz, which are both aiming to take the luxury-sales title by 2020.

The race is stiffening after Audi outsold the BMW brand in the first two months of 2014, while the Mercedes brand outgrown its two larger rivals in recent months. Automotive earnings for the BMW Group – including the BMW, Mini and Rolls Royce brands – dipped to 9 percent of sales in the fourth quarter from 11 percent in the same period a year ago.

For full year 2013, BMW's auto margin was 9 percent, while Audi and Mercedes’ were 10 percent and 6 percent, respectively. “BMW’s numbers look good,” said Erich Hauser, an analyst with International Strategy and Investment Group. “The fourth-quarter margins were stronger than expected.” BMW remarked in November 2013 that spending will remain at a high rate this year.

The carmaker planned to spend around EUR4.8 billion in 2013 to boost production capacity and develop new technology, exceeding its capital expenditure target. Audi CEO Rupert Stadler earlier remarked that competition in the luxury car segment is "more intense than ever." [source: BMW]

Topics: bmw, earnings

If you liked the article, share on:

Comments

Recommended

If you search for the word "grille" on the dictionary, what you will get is a definition that says "a grating forming a screen or barrier, or an ornamental one...
by - September 19, 2017
We recently heard that Italian automakers, Ferrari and Lamborghini, are not so keen on building an all-electric sports car just yet. On the contrary, Bentley has just confirmed that there...
by - September 17, 2017
Back in 2013, Nissan introduced the IDx Concept at the Tokyo Motor Show. When the audience first saw this, a lot of people got excited to see a lightweight sports...
by - September 17, 2017
Does the RS Edition and its LSD feature deserve all the media attention? The short answer to that is yes. Let us explain why. Ford today has revealed its new...
by - September 16, 2017
While the FJ Cruiser was no longer sold in the US since 2014 with the Trails Teams Edition being its final model, Toyota has now decided to terminate its production...
by - September 16, 2017
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