BMW's First-Quarter Profit Plunges 38 Percent!

BMW's First-Quarter Profit Plunges 38 Percent!
Luxury car maker BMW AG said Thursday its first-quarter profit plunged 38 percent as it spent more money on launching new models and because last year's figure included a special gain from an exchangeable bond in Rolls-Royce Group PLC.

The Munich-based company earned €587 million (US$797.62 million) in the three months through March 31, compared with €948 million (US$1288.14 million) a year ago. That was slightly better than the €568 million (US$771.8 million) analysts polled by Dow Jones Newswires had expected.

Sales were up 2.9 percent at €11.95 billion (US$16.24 billion), slightly better than the €11.61 (US$15.78) analysts had predicted.

The company's pretax profit dropped 34 percent to €852 million (US$1.15 billion), lower than the €861 forecast.


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SupraNeverBackSupraNeverBack - 5/3/2007 1:11:53 PM
+2 Boost
I think main reasons are flat sales and low lease rates.


BMW4me4everBMW4me4ever - 5/3/2007 2:32:28 PM
-7 Boost
How many more anti-bmw & pro-lexus posts can a website have? This is ridiculous. Is autospies funded secretly by Lexus? must be. People stop with the lease programs and such. There is NO special incentivised lease program for the 2008 5-series, 2007 7-series, 2007 X5, 3-series coupe or conv, 2007 328xi or 2007 335xi sedan, 2007 650 conv ... That pretty much covers 90% of the BMW product line. The programs over the first quarter of the year were to help clean out the 2007 5-series and such. Also, it costs money to introduce new models into the market. BMW in the last year has introduced a new 3-series coupe, 3-series conv, X5 & a redesigned 5-series .......

This is site is so biased it is ridiculous.


SupraNeverBackSupraNeverBack - 5/3/2007 2:45:53 PM
+6 Boost
That is freaking funny.^0^ This is the true news, BMW 1st q profit drops 38%. How is that biased?


IamEvilHomerIamEvilHomer - 5/3/2007 5:21:08 PM
+2 Boost
the fall of the giant


JMd71JMd71 - 5/3/2007 10:56:58 PM
-2 Boost
"People stop with the lease programs and such. There is NO special incentivised lease program for the 2008 5-series, 2007 7-series, 2007 X5, 3-series coupe or conv, 2007 328xi or 2007 335xi sedan, 2007 650 conv."

Check this out - http://www.bmwusa.com/vehicles/leaseoffers
Decent leases on the 328 Sedan & Coupe, 335 Coupe, 750, X3, X5 and Z4. Last month the entire '07 line up (except the 6 and M) had lease deals.

So BMWs are everywhere, along with MBs and Lexus, but I still love rolling in my A8 :-)


Will_Will_ - 5/3/2007 2:54:32 PM
+5 Boost
How is BMW losing profit dramatically related to this site being biased?

Euro users flashing the "biased" card to divert attention away from facts. Common practice here.


BMW4me4everBMW4me4ever - 5/3/2007 3:12:07 PM
-1 Boost
will ..it is the fact of the articles on this site. Go back and look at the articles that people post or allowed to post on this site. E63 eats BMW M5 for breakfast ( everyone knows the manual trans M5 is not as quick as the SMG M5. This is old news. but love to bring up the past ) ... BMW is stagnate in sales ( even though 2006 in the same month was a record month ) ... BMW loses 38% in profit ( who cares . Everyone that is an auto enthusiast knows that when a company introduces alot of models , 6 new models and 3 new engines , that you are not going to be as profitable. That is business. 6 months from now or a year from now they will make up the 38%. ) ... I could go on ... . Whereas can Lexus do anything wrong? not on this site .... think about it and look at the posts for the last week or so ... It is so ridiculous


BMW4me4everBMW4me4ever - 5/3/2007 3:05:59 PM
-2 Boost
The facts are that whether you Lexus fanboys like it or not, BMW is # 1 in North America for the second str8 month ... Lexus is number 2 ... awe


IamEvilHomerIamEvilHomer - 5/3/2007 5:22:59 PM
+3 Boost
i looked at 001 postings and there was about 50 pro lexus and 50% pro BMW

This is a pro BMW and Lexus website / look at the HEADLINES?


AMGC55AMGC55 - 5/3/2007 3:20:17 PM
-1 Boost
what evs the 335 is still pretty bomb


LexusLexus - 5/3/2007 6:37:38 PM
+2 Boost
Stop your bitching and complaining unless you own BMW stock. It just the fact, accept it, business goes up and down.


jon21jon21 - 5/4/2007 11:50:20 AM
+2 Boost
Good news.


S4cabriofoxoneS4cabriofoxone - 5/4/2007 2:29:08 PM
+2 Boost
Maybe the analysts were right- Audi will have higher profit by the end of the decade.


S4cabriofoxoneS4cabriofoxone - 5/6/2007 1:01:09 PM
+1 Boost
Ha! What, do you think now that Porsche owns them, their profit will go DOWN? You are a joke.


indoctrin8edindoctrin8ed - 5/4/2007 11:42:11 PM
+1 Boost
Take a look at their financials more closely.

BMW is expanding their lineup. That means they need to buy more factories, hire more people and ramp up. That takes 5 years before profits on those costs are regained.

Since sales are up, this means that if BMW can maintain the same % of profit on upcoming new models then this will simple equate to soaring profits 5-7 years down the line.



indoctrin8edindoctrin8ed - 5/7/2007 6:56:06 PM
+1 Boost
Huh76: "Profit per car should be going up due to economies of scale and greater purchasing power for materials. It appears giving incentives has negated this."

Oh really? Can you show me an analysis that suggests BMW has given incentives that have negated cost per car, that otherwise would have been offset by such economies of scale?

Huh76 appears to act like he thinks he has read and understands the complex inner workings of a BMW financial report, and the underlying data, and moving parts of a global economy as it pertains to BMWs financials.

But in fact Huh76 knows very little about business, let alone global economics, let alone cars.

What are your credentials, anyway, huh76?

Ouch! Burn!
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