2023 Author: Eric Donovan | [email protected]. Last modified: 2023-05-21 15:44
The car manufacturer BMW started the new year successfully not only in terms of sales. The Munich-based company increased its profit significantly by eleven percent in the first three months of the year.
Despite high spending on new models and factories, BMW made significantly more money in the first three months of the year. Contrary to the expectations of many experts, the automaker's profit at the start of the year climbed by more than 11 percent to almost 1.5 billion euros. «The BMW Group has made a strong start to the new financial year. We achieved new records in sales and group earnings before taxes in a first quarter,”said BMW boss Norbert Reithofer on Tuesday in Munich. At the arch-rival Audi, high investments had slowed profit growth despite record sales.
Sales increase of over 18 percent
Between January and March, BMW posted an increase in sales of almost four percent to a good 18.2 billion euros. The comparatively manageable plus is mainly due to the strong euro. Many companies feel this effect. The turnover they generate in other currencies is worth less after the conversion, given the stronger, i.e. more expensive, euro. Together with the brands Mini and Rolls-Royce, BMW sold a good 487,000 cars worldwide, an increase of almost 9 percent and a new record for the group. For the year as a whole, BMW wants to break the two million mark for the first time.
But a look at the figures also reveals that the profit increase at BMW has several causes. A large part of the increase is likely to come from China. The business there with the joint venture partner Brilliance does not flow directly into the individual divisions, but is booked in the financial result. As a result, BMW increased its pre-tax profit by eight percent to 2.17 billion euros. In the automotive division, in which the rest of the vehicle business is located, profit remained almost exactly at the values of the same quarter of the previous year. The motorcycle business and the financial services division grew again.
BMW looks to the coming months with confidence. Despite the continued high investments, the pre-tax profit should increase significantly. The Munich-based company is also relying on many new models. The group is bringing 16 vehicles to the start this year. BMW is still satisfied with the launch of the i3 electric car. In March alone, 1,000 of the Stromer were sold, and production currently delivers around 100 i3 per day. In the first quarter, 2022 units were sold worldwide. (dpa)