BMW profits expanded slightly in the first quarter of 2018 as margins unexpectedly climbed despite a hit from currency headwinds on its top-line
The Munich-based premium carmaker explained that first quarter revenues fell 5.1 per cent from a year ago to €22.7bn, owing to “unfavourable exchange rate effects,” but net profit grew 1.2 per cent to a record €2.3bn — a nudge ahead of estimates at €2.2bn. Vehicle sales rose by 3 per cent to record 604,629.
Excluding currency effects, revenues were down 0.7 per cent.
But BMW’s automotive margins actually improved from 9.4 per cent a year ago to 9.7 per cent, meeting the upper range of its 8-10 per cent target. Analysts had expected margins to slim down to 9.3 per cent.
Financial Times explained that BMW operating profits were 0.2 per cent above the record level achieved last year even as it invests more in R&D amid the transition to electric, self-driving cars.
