BMW SUFFERED a 3.3 per cent drop in quarterly earnings at its core autos business, as sales of its ageing 3-Series range lost momentum ahead of February’s relaunch, and margins remained in the shadow of domestic rival Audi.
The world’s largest premium carmaker also split management responsibility for sales and appointed the first woman, Milagros Caina-Andree, to its expanded executive board.
Ms Caina-Andree will join from railway operator Deutsche Bahn’s logistics business, where she was head of human resources.
Germany has been debating whether to introduce a legal quota to raise the number of women in corporate boardrooms, and BMW is the second carmaker among Germany’s 30 blue-chip companies after Daimler to install a woman in top management.
BMW shares ended up 1.36 per cent on Thursday, but well short of a 3.8 per cent jump on the European sector index.
“It’s the first mild disappointment in quite a few quarters,” Credit Suisse analyst Arndt Ellinghorst said, citing an implied quarterly margin of 9.2 per cent at BMW’s core car business, versus his expectation of 9.8 per cent.
“But I believe there’s been a lot of kitchen-sinking in order to keep the momentum going for 2012 and surprise the market with earnings growth,” he added.
Marnie Cohen, analyst at SP Equity Research, said in a note that the quarter was always going to be about transition, given the launch costs and production changeover for the new 3-Series.With Audi and Daimler both forecasting flat profits and sinking margins for this year, the market is concerned about whether the sales bonanza driven by a growing Chinese upper class is starting to peter out.
BMW provided no earnings guidance, but it has long promised it would achieve a sustainable operating margin of between 8 and 10 per cent in its cars business starting 2012.
Chief executive Norbert Reithofer reaffirmed plans to grow sales above the 1.67 million vehicles sold to customers last year.
“We expect the past year’s record-breaking sales volume performance to be surpassed in 2012,” he said.– (Reuters)
