BMW hikes 2nd-quarter operating profit by 26% to 2.6 billion euros

Article by Christian A., on August 7, 2014

BMW logged a 26-percent surge in operating profit in the second quarter of 2014 to EUR2.6 billion ($3.49 billion), thanks to a string of new models, recovering Europe and strong demand in China. BMW's automotive EBIT margin was 11.7 percent in the second quarter of 2014, compared to 9.6 percent in the same period in 2013.

The margin topped those at Audi (9.9 percent) and Mercedes-Benz (7.9 percent). BMW logged a 2-percent jump in revenue in the period to EUR19.9 billion. The increases in sales volume, revenues and group earnings were posted in both the second quarter and the first half of the year, said chief executive Norbert Reithofer in a statement.

Marc-Rene Tonn, an analyst with M.M. Warburg, remarked that BMW had a very strong vehicle mix for the period. Likewise, since prices have been stabilizing, it should have helped Mercedes significantly.

Tonn remarked that car prices in China have probably improved and noting that there could likely been a similar stabilization in Europe, as dealers don’t attract customers anymore by offering crispy discounts.

Mercedes saw its overall sales jump 5 percent to 533,187 in the quarter with its namesake brand surging 8 percent to 458,088 as helped by a leap in sales in China and Europe as well as the introduction of new models like the 4-series and the 2-series.

The Mini brand saw its sales drop 10 percent to 74,028 while Rolls-Royce sold 238 more cars to 1,071 units. Arndt Ellinghorst, an analyst at ISI Group, described BMW's results in the second quarter as impressive.

He said while the second half won't be as strong, BMW will have a stronger cash flow since they are selling all the products. BMW is targeting to top 2 million in unit sales in 2014 to 2 million, an annual sales target originally set for 2016. The luxury carmaker delivered 1.96 million vehicles in 2013. [source: BMW]

If you liked the article, share on:

Topics: bmw, profit

Comments

Recommended

It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019
Nissan is commencing sales of the 2019 Nissan Altima on October 3, 2018 in the United States. As expected, the Japanese carmaker has already divulged the details and specs of...
by - November 26, 2018
Sports utility vehicles are still in heavy demand. Ford knows this very well as the American carmaker has seen sales of its SUVs surge dramatically by 28 percent in the...
by - November 26, 2018
BMW’s European customers who are looking forward to have a new range extender version of the 2019 BMW i3 (BMW i3 REx) will have to bear a bad news from...
by - November 26, 2018
Imagining the future of automotive luxury more than three decades from now seems to be a daunting task. It would be hard for a typical person imagine such future without...
by - November 21, 2018