The BMW Group recorded record sales, revenues and earning during Q1 2012, as the number of vehicles sold by the Group rose by 11.2% to 425,528 units from 382,758 during Q1 of 2011. The BMW, Mini and Rolls-Royce brands all recorded new sales records. This included BMW brand motorcycles at 24,373, +5.5%, which was also the best Q1 sales performance in the company’s history.
As a result, first-quarter BMW group revenues rose by 14.1% to €18.3 billion or $23.9 billion (Q1 2011: €16 b). Profit before earnings, interest and taxes (EBIT) rose by 18.8% to €2.1 billion (Q1 2011: €1.8 b), while profit before tax (EBT) climbed by 21.8% to €2 billion (Q1 2011: €1.7 b). Group net profit increased by 18.1% and reached €1.35 billion (Q1 2011: €1.1 b). The EBIT return is strong at 11.4%.
“The main reasons for this positive performance are the strong demand worldwide for the BMW Group’s attractive vehicles, the strength of the BMW, Mini and Rolls-Royce brands as well as improvements in efficiency”, said Norbert Reithofer, the Chairman of the Board of Management of BMW AG.
The BMW Group continues to target an EBIT margin between 8%-10% in the Automotive segment, with the caveat that the global economic climate does not take a turn for the worse; the BMW Group forecasts an EBIT margin for 2012 at the upper end of this range. This decline is attributed to investment in new techniques and plant expansions.
The BMW EBIT in Q1, as stated at 11.4%, is about twice the returns that General Motors and Ford Motor are achieving. Put another way, BMW earned €2.05 or $2.68 per share of all outstanding stock. GM earned $0.60 per share (w/o special charges for Europe $0.93). Ford Motor earned $0.35 per share. (See GM Makes $1 Billion in Q1. Down from $3.2 Billion in 2011 and Ford Motor Q1 Profit $2.3 Billion, Down $500 Million)
“We are still aiming to achieve new record figures for sales volume and pre-tax earnings in 2012”, said Reithofer. “The BMW Group plans to grow faster than the market as a whole in the current year and expects to achieve new sales volume records for its BMW, MINI and Rolls-Royce brands.”