Recovery in luxury car markets makes Bmw rethink its earnings target

BMW AG, the world’s biggest premium automaker, said that it may have to rethink its earnings target by August. The recovering luxury car markets are being led by China.

For the first quarter, BMW posted a 2.7% margin at its automobiles segment after the division’s earnings before interest and tax (EBIT) exceeded expectations by 35% to reach 291 million euros ($388 million). The company conducted an inventory clear-out of its old BMW 5-series models before the next generation’s European relaunch set in late March. As a result, some analysts were led to incorrectly predict higher incentives in the first quarter, with a resulting drop in profitability.
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BondMI6 - 5/6/2010 1:01:59 PM

+6 Boost

The new 5er can only help this..........

Hopefully the profits will allow BMW to make more vehicles ala M3CSL, the CS Concept etc........

bmwM3 - 5/6/2010 1:55:17 PM

+3 Boost

I just read the BMW GROUP posted 424 million in profit for the first quarter, very impressive considering its a small/medium sized independent company. With a lot of new exciting models coming out things are looking very good for BMW.