BMW Posts H1 EBIT Increase

As did pretty much all the other German manufacturers, BMW reported today a significant increase in volume sold and consequently profit for the second quarter of 2010, an achievement which in turn brought the numbers for the first half of the year to new levels.

The group sold in H1 585,755 units, up a solid 14.1 percent compared to the same levels of last year. Converted into money, this means the EBIT swung from a loss of EUR282 million last year to a profit of EUR1,608 million. The free cash flow generated by the core business of BMW amounted to EUR1,199 million.

“Sharp sales volume growth on major markets and a high-value model mix are the main reasons for the strong second-quarter performance. We have also used the economic crisis as a source of opportunity and have improved efficiency significantly in all areas of the company,“
Norbert Reithofer, BMW chairman of the board said when announcing the results.

Having witnessed the improvement in the first half of the year, BMW is now targeting a better than previously believed performance for the year. In 2010, the group aims to achieve an EBIT margin of over 5 for the auto business, only a small step towards reaching an EBIT margin of eight to ten percent in 2012. Provided, of course, the world economy continues its recovery.

“We intend, as the world’s leading manufacturer of premium cars, to increase our sales volume in the current year by around 10% to over 1.4 million vehicles“, Reithofer added. “That said, we still need to keep in mind that some economic risks could persist during the second half of the year“
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories