BMW announced record earnings of $6.6 billion for 2012. Profits jumped by 4.4 percent on strong sales in China and the United States, the company reported March 14. By investing in new technology and adding staff, BMW wants to retain the leadership in the luxury segment of the automotive market.
Norbert Reithofer, chairman of the board, said in a statement, “The past year has been the most successful year in BMW Group’s corporate history ... We have achieved or surpassed all of our targets for 2012 in the face of very challenging market conditions.”
With a record of 1,845,186 units shipped (up by 11.6 percent), the company leads the luxury segment of the market ahead of brands such as Audi, Porsche, Mercedes, Lexus, or Infinity.
The BMW label comprises the lion’s share, but the group’s other brands—Mini and Rolls-Royce—also registered growth.
China was the fastest growing geographic region, with shipments up by 40.1 percent. Sales in the United States also rose by 13.8 percent to 348,532 units, compensating for slower growth in Europe (0.8 percent).
In total, the company increased revenues by 11.7 percent to $99.5 billion—another record.
Analysts from Société Générale think that BMW shares are a buy: “All in all, BMW’s Q4 and full-year earnings are clearly high quality.” The analysts believe that the shares could go up to 83 euro (currently 70.62, -0.91 percent), as “the group’s attractive growth opportunities” are not reflected by the current price.
At the end of 2012, BMW employed 105,876 people, and the company plans on adding staff. “The BMW Group continues to recruit staff, in particular engineers and skilled workers, in order to keep pace with ongoing strong demand for BMW Group cars, push ahead with innovations and develop new technologies,” the company stated.
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