BMW’s profits go from strength to strength, and investors are only divided by the
amount of exuberance they show about the company’s future - “BMW has the youngest
fleet out of the premium makers and is set to continue through 2015 and 2016 ahead of the
launch of the 5-Series”
Leading the cheering is Arndt Ellinghorst, analyst with International Strategy and Investment
After underestimating BMW’s first quarter performance, Ellinghorst expects profitability to
continue to grow because of its new model programme and cost management.
BMW reported fi rst quarter operating profit otherwise known as earnings before interest and tax
(EBIT) rose three per cent to €2.09 billion compared with the same period of 2013 as sales gained four per cent to €18.2
Automotive pre-tax margin was 9.5 per cent.
BMW’s long-term goal is for a pre-tax profit margin of between eight and 10 per cent.
In the first quarter, German rivals Mercedes made a seven per cent margin while VW’s Audi earned 10 per
MARKET VIEW | Peugeot - Lion scratching for food 30 Jan 2014
MARKET VIEW | Lame
recovery replaces European slump 03
MARKET VIEW | Tesla - Distant dream or reality? 19