BMW said its X family, including the X3, helped the Bavarian maker to a sales increase in the first quarter of this year.
BMW turned strong sales in China and a nice rebound in Europe into an 8.4% increase in profit before taxes in the first quarter of the year. The news is even better when going straight to the bottom line as the group’s net profit was up 11.4% on a year-over-year basis.
First-quarter sales in Europe rose 3.4% to 214,210 units from last year’s 207,243 units. Asia sales were up 21.8% to 158,582 units with China leading the charge with a 25.4% increase in deliveries to 108,143 units.
Earnings rose to 1.46 billion euros ($2.03 billion) from 1.31 billion euros in the same quarter a year earlier. The figure was higher than the 1.35 billion euros consensus expectation among analysts surveyed by financial information provider FactSet, according to Reuters.
BMW said U.S. was the largest market for its i3 electric vehicle. The company expects a similar result for the soon-to-arrive i8 in the U.S.
The Bavarian maker’s BMW auto unit led the profitability charge with a global sales increase of 12.3% during the period. Rolls Royce enjoyed a nice jump of 39.7% as well. The two brands more than offset the 12.5% drop in Mini sales.
The BMW 3, 5 and 6 Series as well as the X5 each headed the market in their respective segments, pushing the aforementioned increased to 428,259 units from 381,404 units during the year-ago period.
The automaker noted the X family was responsible for significant growth drivers in the first three months of the year. Sales of the BMW X1 rose by 14.8% to 43,262 units, while the BMW X3 achieved an increase of 10.9% to 40,125 units. The new BMW X5 continues to sell very well, with first-quarter sales volume up by 13.8% to 31,025 units.
Not only did its SUVs – which are built at the Spartanburg, S.C. plan that is being expanded to increase production – sell well, it’s getting ready for the next wave of its eco-friendly BMW i family: the i8 plug-in hybrid sports car. The i3 has gotten a warm reception in the U.S.
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“The demand for our innovative electric vehicle is high,” said Dr. Norbert Reithofer, chairman of the Board of Management of BMW AG, in a statement. “In March alone, we sold 1,000 BMW i3 cars worldwide. Just a few days ago, the BMW i3 was launched in the U.S. American customers are particularly open to new types of drivetrains. We expect the majority of BMW i3 cars to be sold in the U.S.”
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This bodes well for the i8 introduction as the company expects to sell the largest share of the hybrid sports car – 25% – in the U.S.
Reithofer said the early results buoy the Munich-based BMW’s expectations for the rest of the year, including: new record sales on the Group level of more than 2 million cars; a new record in Group profit before tax, significantly above the last year’s level; and an EBIT margin in the automobile segment in the range of 8 to 10%.
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“In 2014, we are focusing even more strongly on innovative technologies and customer satisfaction,” he said. “Through innovation, we continue to develop our brands and drive progress forward in our industry. That is how we secure our own future in an ever-changing environment. And that is how we create added value for our customers and shareholders.”