German premium carmaker Bayerische Motoren Werke AG or BMW Group (BAMXY.PK, BAMXF.PK, BMW.L) Thursday reported a lower first-quarter profit, reflecting the current weakness in European car markets. For full year 2013, the Group still aims to increase sales volume worldwide compared to the prior year.
In full year 2012, the company had delivered 1.85 million units of BMW, MINI and Rolls-Royce brand vehicles, up 10.6 percent from 2011.
Norbert Reithofer, chairman of the board of management stated, "...And despite high expenditure on new technologies and challenging market conditions worldwide, we managed to keep revenues and earnings at high levels. At 9.9%, the operating margin in the Automotive segment for the three-month period was at the top end of the return corridor we aspire to achieve on a sustainable basis."
During the quarter, total number of BMW, MINI and Rolls-Royce brand vehicles delivered to customers increased 5.3 percent to 448,200 units from 425,528 units a year earlier.
In the first quarter, Group net profit declined to 1.31 billion euros from 1.35 billion euros in the previous year. Profit before tax was 2.00 billion euros, lower than 2.08 billion euros in the prior year.
Profit before financial result, or EBIT, was 2.04 billion euros, compared to 2.13 billion euros in the preceding year.
Group revenues for the quarter fell 4.1 percent to 17.55 billion euros from 18.29 billion euros in the same quarter last year. Revenues from the Automotive segment declined 1.6 percent to 15.91 billion euros. Motorcycle segment revenues decreased 2.7 percent to 436 million euros.
"We do not expect to receive a great deal of impetus from most European markets over the next few months and economic conditions in these areas are likely to remain challenging," said Reithofer.
In Frankfurt, BMW shares are currently trading at 70.41 euros, up 0.56 percent.
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