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SUVs Drive Record Revenue for BMW
BMW AG says strong demand for its lineup of SUV/crossover vehicles helped it increase sales in 2017 by 4% to a record 2.46 million units.
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BMW AG says strong demand for its lineup of SUV/crossover vehicles helped it increase sales in 2017 by 4% to a record 2.46 million units.
Gains in unit sales in Asia (+14% to 747,300 units) and Europe (+1% to 1.10 million) offset a 2% decline to 451,100 units) in the Americas. Sales in the U.S. of BMW and Mini brand vehicles shrank 4% to 353,800 cars and SUVs.
Group net profit jumped 26% to €8.7 billion ($10.7 billion) last year, thanks to the drop in the U.S. federal corporate income tax rate to 21% from the previous 35%.
The company reports its group revenue climbed 5% to a record €98.7 billion ($121.9 billion) last year. Operating profits rose 5% to €9.9 billion ($12.2 billion).
BMW boasts that the growth in pretax profits came in spite of an 18% hike to €6.1 billion ($7.5 billion) in r&d spending. “This,” crows financial chief Nicolas Peter, “is what we mean by sustained profitability.”
The company’s automotive business saw revenues last year advance 3% to €88.6 billion, pretax earnings rise 2% to €7.7 billion and pretax profits climb 10% to a record €8.7 billion.
The company will release further financial details on March 21.
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