By Kim Richters
BMW AG on Friday reported a jump in first-quarter profit, and said it plans to meet the higher end of its forecast for the auto-business margin this year.
The German luxury car maker's quarterly net profit jumped to 2.81 billion euros ($3.39 billion) thanks to higher deliveries and better pricing, compared with EUR554 million the same period a year earlier. Revenue increased to EUR26.78 billion from EUR23.25 billion.
BMW confirmed previously released earnings before interest and taxes in its automotive segment of EUR2.24 billion, up from EUR229 million, and the corresponding EBIT margin, which soared to 9.8% from 1.3%.
For 2021, the auto maker said negative effects from the coronavirus pandemic couldn't be ruled out and rising raw materials prices could weigh on earnings.
However, BMW backed its outlook for the full year, expecting profit before taxes for the group to be significantly higher than in 2020 and auto deliveries to rise solidly. In the automotive segment, it now aims to reach the upper end of the previously announced EBIT margin forecast range of 6% to 8%.
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