BMW achieves record Q1 earnings May 5, 2006
German car maker BMW has achieved record quarterly earnings, reaching a net income of $1.2 billion, a rise of 80% on the previous year.
BMW said the number of cars sold in the first three months also represented a new high, leading the company to predict a very good year for 2006. The total number of BMW, Mini and Rolls-Royce brand cars sold increased by 13.9% to 332,923 units from 2005.
“We are well on our way to achieving our target of a group profit before tax of E4 billion,” said Helmut Panke, the chairman of BMW. “We also expect earnings to increase in 2006 at an operating level excluding the exceptional gain from the exchangeable bond on Rolls-Royce shares.”
The profit after tax rose by 80.6% to $1.2 billion in the first quarter. Earnings per share increased to $1.83, up from 78 cents the year before. As a result of the jump in earnings, the pre-tax return on sales increased from 7.9% to 11.2%.
Before tax earnings rose by nearly 58% to $2.15 billion, helped by the sale of engine manufacturer Rolls-Royce yielding E375 million. Excluding this sale, BMW’s profit before tax still increased by 12% to $1.53 billion.
BMW plans to bring out numerous new car models in 2006, including the Z4 Coupe and the BMW Group. In total, the investment in new products for the period between 2005 and 2009 is estimated to be in the region of $24 billion. This includes two completely new model series that are planned to come onto the markets from 2008 onwards, and expansions to the Mini and Rolls-Royce lines.
- Posted in : BMW,Uncategorized
- Author : arnold
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