BMW aims to sell record 2 million cars this year

Thursday, 20 March 2014 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: BMW aims to sell a record 2 million cars or more this year, the world’s largest luxury carmaker said, after posting better-than-expected results and raising its payout to shareholders. The German carmaker said operating profit at its core automotive division fell 14% in the last three months of 2013, despite higher sales, due to spending on fuel-efficient technology and model launches. Analysts had expected a steeper fall. The investment drive, which includes the launch of the i3 electric vehicle and the next generation of the Mini, will help BMW increase sales again this year in the face of stiff competition from rivals Audi and Mercedes-Benz. “We forecast further sales volume growth in the current year which will again bring us a new all-time high,” Chief Executive Norbert Reithofer said on Thursday. In 2013, BMW delivered 1.96 million cars with BMW, Mini and Rolls-Royce registering record deliveries, driven by a 19.7% rise in mainland China and an 8.1% rise in the US, the company said. Volkswagen’s Audi delivered 1.57 million cars, while Daimler’s Mercedes-Benz delivered 1.566 million last year. In terms of models, BMW Group’s sales were boosted by a 23% rise in deliveries of the 3-series sedan, stable sales of the Mini and a 1.5% rise in deliveries of Rolls-Royce luxury cars. BMW proposed a lower-than-expected dividend increase for 2013 to 2.60 euros a share for common stock from 2.50 euros in 2012, and 2.62 euros a share for preferred stock. Analysts had hoped for an increase to 2.72 euros on average per common share, according to a Reuters poll. BMW said its automotive division’s fourth-quarter earnings before interest and tax (EBIT) dropped 14% to 1.77 billion euros ($ 2.46 billion). That was better than the 1.68 billion euros forecast by 12 banks and brokerages polled by Reuters. BMW’s automotive EBIT margin, the best gauge to compare profitability with peers, was 9.2% in the fourth quarter. That was higher than the 8% quarterly return on sales achieved by rival Daimler’s Mercedes-Benz Cars division.

BMW sees higher profits and car sales in 2014

REUTERS: BMW on Wednesday said it expects record car sales and a rise in pretax profit in 2014, if political and economic conditions remain stable. “We expect group profit before tax to rise significantly in the current year, despite ongoing volatile business conditions,” BMW’s Chief Executive Norbert Reithofer said at the company’s annual results press conference. The Munich-based owner of the Mini, Rolls-Royce and BMW brands reiterated it aims to achieve a significant rise in sales volume in 2014, after it delivered a record 1.96 million cars in 2013. Last week BMW reported its automotive division’s fourth-quarter earnings before interest and tax (EBIT) dropped 14% to 1.77 billion euros ($ 2.46 billion), beating analyst expectations of 1.68 billion euros.