BMW’s 2009 third quarter earnings fell 86 per cent on last year’s levels, but the firm still returned a 55million euro (£49.5m) profit before tax and interest.
Despite seeing a drop in year-on-year sales in 2009 of between 10 to 15 per cent, the firm still managed to return a pre-tax profit for the quarter thanks to its cost cutting measures.
CEO Norbert Reithofer expects the market to begin to recover over the next while, while BMW’s sales should be boosted by the launch of the new X1 and 5-series GT models.
“We expect that the markets will make a gradual recovery over the coming year,” he said.
In the first nine months of 2009, BMW, Mini and Rolls-Royce sales fell a combined 15.7 per cent to 939,554 units. BMW’s auto division has seen an operating loss of 358m euro so far in 2009, but overall it saw a 169m euro (£152m) operating profit.
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Re: BMW returns £50m profit
i wil say it a further time, I AM NOT NORTH, I am sorry tomallet that you think I am, BUT I AM NOT - I WILL SAY IT AGAIN, I AM NOT NORTH.
I think you are right in terms of brands looking at sub divisions and opening up the offerings, but they are building on existing platforms and or shared platforms and not trying to push into niches that are ever harder to chase, why does BMW need to chase the every smaller niches is the true question. BMW in the USA made a big noise about being independent and now it is not, it has two link ups that I know of i.e. mini engines and hybrid drives.
I think Mercedes are expensive and I do not rate them, but they have much more cross over and the same is very much true for Audi; BMW just DOES NOT have the same depth to them, they just do not and depth counts.
BMW are not in the prem. league as far as organisations go, they built with a direction in mind and that has now changed, the ability of a good organisation is to change with that and I do not think they can; they were to focused and then magnified the focus.
BMW will not be fine and once more I AM NOT NORTH (I am sorry is the latter disappoints you)
Re: BMW returns £50m profit
Reply to North:
The asian market has suffered more than many thought due to the downturn and it has effected everyone else as well.
Secondly, what you think is not necissarily the truth, every brand is looking at niche markets and this is not only true of BMW, it is the case with Audi and Mercedes too and some of those have not been a success.
My personal industry experience tells me that BMW is in the premier division when it comes to being a well run organisation and I think it'll be just fine!
Re: BMW returns £50m profit
i will say this just twice more, I AM NOT NORTH
as for BMW, they made a loss and have not performed well, the X1 has competition in terms of Kuga, Yeti, the New Mitsi etc (there are lots coming out) and it will suffer; read the write ups for the Yeti and yes it is in the same space.
the other issue with the X1 is as has been said and posted on the forums, people who already have BMWs seem to like it, some will consider not buying a 3 touring for the X1; that is a big issue; will the X1 attract any new consmers (I think not).
the other big issue is the product line up and general global position; it was not that long ago (about 18 months I think) that one of the cheifs predicted that BMW will make a profit and expand throughout the downturn as it has the Asian markets; except it did not work like that did it!
I also recall some people could not imagine the Mini being attacked; other cars are attacking its share with excellent success; 500, Mito etc and the Audi 1 is coming out soon; I also recall the Audi 1 will have a 4x4 version i.e. more X1 sales lost.
FOR THE LAST TIME I AM NOT NORTH