According to the German automaker, which is the biggest globally in the luxury segment, its first quarter profit went up by 2.6% thanks to rising demand for its SUV models, which balanced the increased spending requested by the company’s expansion.
Bayerische Motoren Werke AG had its earnings before interest and taxes (EBIT) grown to 2.09 billion euros ($2.9 billion), up from last year’s 2.04 billion euros. The company’s total revenue jumped 3.9% to 18.2 billion euros.
“The BMW group has made a strong start to the current financial year with new record first-quarter figures,” Chief Executive Officer Norbert Reithofer said in a statement. “We are aiming for a new record group profit before tax figure, which will be significantly higher than in the previous year.”
“Compared with its premium competitors BMW has a more balanced exposure to markets and segments,” added Roman Mathyssek, a Munich-based analyst at Strategy Engineers GmbH consulting company.
Deliveries at BMW’s namesake brand were up for the first three months by 12%, allowing the carmaker to maintain the top position for the period, besting No.2 Audi and No.3 Mercedes-Benz.The sales increase was propelled by rising SUV sales, with the X1 model gaining 15%, the X3 rising 11% and the big X5 managing a 14% increase.