BMW reports Q1 operating profit of US$2.8 billion
BMW reported an impressive rise in first quarter operating profit of US$2.8 billion. Strong sales in both the United States and China accounted for the higher profit margin. Sales in China, where a wealthier consumer base is now demanding luxury goods, rose 72%. The company’s sales now account for 15% of the group’s car sales. However, China’s car market is due to slow down in the light of stricter regulations for registration and higher fuel costs. BMW’s goal is to hit a full year operating margin of 8%, in spite of the expected slowdown in automotive sales in China. Chief Executive Norbert Reithofer said, “We expect we will still have a good double-digit growth rate, but it’s not going to be above 80% anymore.” Sales in the U.S. are adding to the optimistic outlook, with U.S. vehicle sales up 18% in April. (May 4, 2011)