FRANKFURT, Germany: Booming sales in China and new versions of key models pushed automaker BMW AG's earnings higher by 18 percent in the first quarter to 1.35 billion euros ($1.77 billion).
Sales were flat in Europe where the economy is slack, but the Munich-based maker of luxury cars and SUVs saw a 36 percent jump in deliveries in China, where it now sells more vehicles than it does in the United States.
Revenue rose 14 percent to €18.29 billion, the company said.
Sales worldwide rose 11 percent to 425, 528. Top performers were new versions of the 1-series compact and the X3 smaller SUV. The larger X5 SUV and the large 7-series sedan, both of which reap big profit margins, also saw better sales.
Sales in China outpaced those in the United States, 80,218 to 75,931. But deliveries in Europe, which is struggling with a slow economy and a crisis over too much government debt, only edged up 0.5 percent.
Analyst Max Warburton said a strong product mix emphasizing expensive vehicles with high profit margins helped alongside the higher sales numbers. He said more profitable vehicles, defined as the mid-size 5-series sedan and up, represented 50 percent of sales.
"BMW's sales mix, pricing and profitability remain superb," Warburton said.
BMW's profit margins — measured as earnings before interest and taxes as a percentage of sales — came in at 11.6 percent, down slightly from 11.9 percent but ahead of 11.4 percent posted by Volkswagen unit Audi AG and 8.4 percent for Daimler AG's Mercedes brand.
Germany's luxury carmakers are making fat profits, much of it on export sales to emerging markets and the United States, while Europe's mass-market carmakers such as GM's Adam Opel AG and Fiat are struggling with tough competition and weak sales and pricing.
BMW's workforce grew by 5.4 percent over the past year and it employed 101,260 people at the end of the quarter. Part of the increase came from the acquisition of the ICL Group car leasing unit, but the company said that "skilled workers and engineers continue to be recruited in order to keep pace with persistently strong demand for BMW Group vehicles, to push innovations and to focus on the development of new technologies."
BMW makes cars under the BMW, Mini and Rolls-Royce brands. It also sells BMW and Husqvarna motorcycles.
FROM: THE ASSOCIATED PRESS
BMW profit up 18%
BMW profit up 18%
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
