BMW profits triple

* First quarter profits soar * Highest demand in China * Worries over future, though...

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What Car? Staff
5 May 2010 11:29 | Last updated: 14 Jun 2018 00:03

BMW has announced first-quarter profits for 2010, which have more than tripled when compared with the final three months of 2009 confirming a return to demand for premium cars.

The car maker reported an operating profit in its automotive sector of 291 million (250 million) in the first quarter of 2010, compared with 93 million (80 million) in the last three months of 2009.

The increase in demand for BMW's luxury cars, such as the new 5 Series, has been spearheaded by sales in China, where orders have more than doubled.

Future concerns over profitability
BMW's operating profit margin in the first three months of 2010 was 2.7%, which trails its main rival Daimler, which returned a 7% margin in its automotive sector.

Analysts are also concerned that BMW's future profits could be cut further because of the company's plans to expand the production of its smaller cars such as the Mini meaning equally reduced margins.

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