BMW's Third-Quarter Profit Increases 44% YoY

BMW Motors recently announced that its third-quarter profit increased by 44% year-on-year. Profit growth was mainly attributable to the surge in demand for the BMW 5 Series and X3 SUVs.

EBIT increased from 1.19 billion euros (16.4 billion U.S. dollars) last year to 1.72 billion euros (2.35 billion U.S. dollars). Sales increased by 3.8% year-on-year to 16.5 billion euros (22.7 billion U.S. dollars).

Due to the European debt crisis, BMW's sales growth slowed down in the third quarter. BMW's rival Mercedes-Benz's parent company, Daimler Group, has revealed that for the first time since 2009, there has been a drop in profits.

Although the growth rate has slowed down, BMW Motors Corp. still insists that this year's annual sales and profits will increase substantially from last year. The sales of automobiles this year will exceed 1.6 million vehicles, and the EBIT margin of the automotive business will be at least 10%. %. In addition, BMW expects to reach the goal of selling 2 million vehicles a year by 2020. To achieve this goal, BMW is considering adding new models and building new factories.