BMW, which reported a smaller decline for the Q1 than analysts’ estimations, said it will keep its 2013 target.
BMW’s EBIT dropped 4.5% to 2.04 billion euro, beating the analysts’ estimation of 1.82 billion euro. The automaker relies on the increased demand in the US and China and its new models to offset the loss caused by the sovereign-debt crisis in the European auto market, which heads towards a 20-year low. BMW plans to reach record sales this year, as it puts all its hopes in the recent introductions, the 3-Series GT and the 4-Series coupe.
BMW said that this year’s pretax profit will most likely match the record level reached last year, thanks to the company’s massive investments in new models, technologies and production network. During the first quarter the automaker’s profit margin dropped to 9.9% from 11.6% in 2012. Net income in the Q1 fell 3% to 1.31 billion euro, while revenue also dropped 4.1% to 17.5 billion euro.
“The auto Ebit margin was an impressive performance,” said Frank Biller, a Stuttgart-based analyst with LBBW. “It now depends on the second quarter and the expected improvements in the second half of the year if they can reach the upper end of the margin range.”