BMW Silences Pundits With A 21% Jump in Profits For Quarter

Earnings before interest and taxes increased to 2.52 billion euros ($2.83 billion) from 2.09 billion euros a year earlier, BMW said today in a statement. Revenue jumped 15 percent to 20.9 billion euros.

BMW said its automotive EBIT margin was 9.5 percent in the quarter, remaining at a similar level to the year-earlier quarter and at the upper end of its target range of between 8 percent and 10 percent, thanks to record sales of high-margin SUVs in the quarter.

By contrast, the quarterly return on sales from ongoing business at Daimler's Mercedes-Benz Cars jumped to 9.2 percent from 7 percent a year ago, while Audi's operating margin slipped to 9.7 percent from 10.1 percent.

TheSteve - 5/6/2015 10:45:42 AM

+2 Boost

Yeah, I'm no BMW FanBoi, but I have a lot of respect for that company. Love or hate their products, the company itself is extremely well run. Unlike Audi who is fighting to become the No.1 Luxury Carmaker by unit sales, BMW seems to be content with consistently healthy profitability. As long as there are enough BMW consumers to support that, it looks like a winning formula.

carsnyc - 5/6/2015 1:14:41 PM

+1 Boost

Agreed and not my favorite make either, but let me also give them credit for something else: Aside from some of the steering disconnect we have been feeling in the more recent models (5 series anyone?), BMW's core products have not changed in decades in both form and personality. And the SUV additions have been able to deliver on the same good genes.

Audi on the other hand is like the social climber or "arribista" among the German going from being an alternative to Opel in the 70's and well in to the 80's, to a "me to" based on shared platforms and parts from a myriad of other brands part of the VW homongous group

Agent009 - 5/6/2015 3:26:01 PM

0 Boost

Actually all of the automakers are either on or moving to shared platforms at this point.

GermanNut - 5/7/2015 2:40:25 PM

0 Boost

That's because the independent companies like BMW realize they simply can't compete on a cost perspective with a competitor like Audi that has the benefits of economies of scale that come with being a part of the Volkswagen Auto Group.

GermanNut - 5/7/2015 2:42:52 PM

0 Boost

Even with BMW's large jump in profitability it's profit margin still trailed Audi's slightly. This shows just how much of a cost advantage Audi has and precisely why it is on the verge of overthrowing BMW for the title of world's best-selling premium brand. That extra profit is being spent on developing new models, research and development and creating better products. Audi's sales results over the past decade are indicative of this.