Bayerische Motoren Werke AG, the world’s biggest maker of luxury vehicles, reported a narrower-than-expected decline in third-quarter profit as higher deliveries partially compensate for new models spending. Despite volatile business conditions, the BMW Group continued on its successful course during the third quarter and first nine-month period of 2013 and kept its position as the worlds leading premium car company.
Earnings before interest and taxes declined 3.7% to 1.93 billion euros ($2.6 billion), the Munich-based company said today in a statement. Profit exceeded the 1.86 billion-euro average of 11 analyst estimates compiled by Bloomberg. Revenue slipped 0.4% to 18.8 billion euros.
“Reported figures for both the third quarter and the nine-month period have developed positively despite the higher level of expenditure on new technologies and a challenging market environment in Europe. We have recorded best-ever worldwide sales volume figures to date and remain within our targeted margin range for the Automotive segment”, stated Norbert Reithofer, Chairman of the Board of Management of BMW AG, on a press release.
The maker of BMW, Mini and Rolls-Royce vehicles is investing in the urban electric sedan named i3, the new 4-Series coupe and an upgrade of the X5 SUV. The expansion is part of the company’s effort to maintain its sales lead over Volkswagens Audi and Daimler’s Mercedes-Benz, which have both vowed to surpass BMW in annual deliveries by the end of the decade.
“It will be interesting to see how orders of the i3 develop in coming months as BMW is entering a new segment with this car,” Frank Biller, a Stuttgart, Germany-based analyst at LBBW, said via phone to Bloomberg before figures were released. “Mercedes is currently narrowing the gap.” he added.
BMW sales, including Mini and Rolls-Royce, rose 11 percent to 481,657 vehicles in the third quarter, boosted by demand for the 3-Series line, which has been expanded to include a GT version.
BMW maintained its position in the premium segment worldwide during the nine-month period this year. Worldwide sales increased by 11.7% to 405,350 units (compared to 362,898 units in 2012) in the third quarter and by 9.0% to 1,209,598 units (compared to 1,109,962 units in 2012) for the nine-month period.
The number of employees for the period ending September 30 increased by 5% compared to one year earlier. Overall, the BMW Group had a worldwide workforce of 109,871 employees (compared to same period last years 104,668 employees). The need of more personnel was attributed to the growing need for engineers and skilled workers in order to keep pace with continued strong demand and development of new technologies.
BMW is also introducing 25 models in 2013 and 2014, with 10 of them being completely new line models. Car-maker shares slumped 4% after yesterdays trade session.
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