BMW earnings push higher on sales of 5-Series, X1 SUV

The company logo of car manufacturer BMW is pictured on a car in Munich, Germany on Tuesday, March 19, 2013. (AP / Matthias Schrader)

FRANKFURT -- German automaker BMW AG saw first-quarter net profit rise slightly from an already high level as sales strengthened across all regions and the company's 5-Series sedan and X1 sport-utility logged double-digit increases.

Net profit rose 1.2 per cent to a record 2.301 billion euros ($2.757 billion), from 2.274 billion euros in the same quarter a year ago. Revenues for the Munich-based automaker fell 5 per cent to 22.7 billion euros, mostly due to shifting currency exchange rates.

The company increased its profit margin based on earnings before interest and taxes, a key earnings metric, to 9.7 per cent from 9.4 per cent.

BMW is counting on continued strong profits to fund investment in new technologies such as autonomous and electric vehicles. CEO Harald Krueger said in a statement Friday that "we are combining tomorrow's mobility with sustainable profitability." In April the company opened its campus for autonomous driving outside Munich where it plans to develop the technology required for both highly and fully automated driving. It said it has recruited around 1,000 people in related fields such as artificial intelligence, machine learning and data analysis.

Sales rose across the company's three main regions: Asia, North America and Europe. Sales of the 5-Series rose 13 per cent to 94,733, while sales of the X1 small SUV jumped 17 per cent to 77,296.

The company's Rolls-Royce division saw sales rise 10 per cent from the year-earlier quarter, to 807 vehicles. The company said demand remains strong with the exception of the Middle East, where the market remains volatile. A new version of the Phantom, the luxury brand's flagship model, has been on sale since January.

The net profit figure beat expectations for 2.164 billion euros among analysts as compiled by financial information provider FactSet. BMW reaffirmed its profit target for the full year, saying its group profit before tax would be at least as high as last year's.

BMW shares fell 1.8 per cent to 90.55 euros per share in morning trading in Europe.