BMW is hoping the upcoming launch of its 6-Series line will keep its momentum going.
Driven largely by booming sales in China, BMW saw its first-quarter profits jump nearly fourfold, the maker announced today.
Net earnings of 1.21 billion Euros, or $1.79 billion, compared favorably to the 324 million profit the Bavarian maker reported a year ago. Sales, meanwhile, jumped 29%, to 16.04 billion Euros.
The news followed Tuesday’s report that BMW had scored another big jump in sales in the U.S. market during April, strongly driven by its Mini brand.
But the German manufacturer has also become a potent powerhouse in Asia, where volumes soared 53% during the first quarter, with Chinese sales rising a full 72%, well ahead of that booming market’s overall increase.
Europe remains the biggest market for BMW, and produced a 13% increase in sales during the first quarter, but its role is steadily diminishing as demand for luxury vehicles continues booming in other parts of the world, especially emerging markets like China.
The good news for the Bavarian maker is that luxury sales have been holding up better than the overall European market, which has been shrinking under the weight of economic problems in countries like Portugal and Ireland – and due to the elimination of sales-building old vehicle scrappage programs.
On a per share basis, BMW earnings came in at 1.84 Euros, about 20% better than the consensus forecast of 1.55 Euros.
It was a good quarter for German makers, in general. Volkswagen saw profits surge to 1.7 billion Euros, thanks to strong demand for its Audi brand and continued growth in China. Daimler AG, which produces the Smart and Mercedes-Benz brands, saw its first-quarter earnings double, to 1.18 billion Euros.