BMW AG, the world’s largest premium carmaker has just announced an analyst expectations beating operating profit for the year’s third quarter. Still, the automaker has also silently decreased its forecast for auto sales in 2014.
The financial report for the third quarter painted a rosy picture for the carmaker, which saw its earnings boosted by increased demand for its line-up of sport-utility vehicles (especially the full-size X5) – which compensated disappointing sales of its electric cars. Reading through the lines shows us that although the company has maintained its target to surpass 2 million car deliveries in 2014, Chief Financial Officer Friedrich Eichiner said that BMW actually expects a “solid” sales growth. That’s a level below the previous forecasts, which cited expectations for a “significant” climb. With media representatives asking for clarifications, a BMW spokesperson said that in company words “significant” equals to a percentage sales climb in the high single-to low double-digit range, while “solid” is lower than that.
According to Eichiner, “we have to focus on profitability,” and he further explained that in order to protect its high earnings margins the company is willing to allow a dip in the sales volume. That’s a daring move, considering that BMW’s recent increases in sales railed both Audi and Mercedes-Benz, its closest rivals.