BMW Makes Profit in First Quarter with Rising Demand in the U.S. and Europe
Published By : 07 May 2015 |Published By : QYRESEARCH
Stronger demand in the U.S. and Europe for models such as X5 SUV has reaped profits for BMW in the first quarter of this year. The company reported a 21% hike in its profit this time. In a statement released yesterday, the automotive giant mentioned that its EBIT increased to 2.52 billion euros, which has been a considerable increase from the last year’s EBIT at 2.09 billion euros. The revenue has leaped to 15% to reach 20.9 billion euros. Competitor Audi’s operating margin has dropped to 9.7% whereas the quarterly return on sales of Daimler has increased to 9.2%.
Analysts mention that the first quarter profits show the slow growth of BMW but it has not matched the growth pace of its competitor Daimler. BMW is expecting to register record sales and profits this year after the launch of several new and upgraded models such as BMW 2-series Gran Tourer seven-seat compact minivan. However, the auto manufacturer is cautious of its poor sales in automobile markets in Russia and China.
In the first quarter, BMW has sold 451,576 cars, registering a hike of 5.4%. Also, there has been 30% increase in the deliveries of its X5 SUV model. With the hike in its quarterly earnings, the car maker joins Volkswagen and Daimler in reporting first quarter profits. Analysts relate the positive earnings of the manufacturers to the growth of the U.S. automotive market.