BMW Confirms Its Annual Forecast Despite Slightly Lower Profitability in the Automotive Division in the First Quarter, with Increasing Production Costs Being Recorded. The Division's Operating Margin Stood at 8.8%, Just below the Consensus Estimate of 9.2% Compiled by the Company Itself.

The deliveries of the brands BMW, Rolls-Royce, and Mini increased in the quarter by 1.1% to 594,533 units, driven by the sale of BMW cars in Europe. However, volumes decreased in China as demand for premium cars declined.

Higher Sales Numbers and a More Favorable Mix of Higher-Priced Cars and Electric Vehicles Increased Revenue in the Automotive Sector. For This Year, Prices Across the Entire Product Range are Expected to Remain at the Level of the Previous Year.

Research and development costs rose sharply in the quarter, as investment continued in the electrification and digitalization of the vehicle fleet, as well as in the development of automated driving functions and the development of the New Class models.

"This year, it will be more important than ever to stay the course strategically," said CFO Walter Mertl. "The investments needed for the digital and electric future of our company are the highest we've ever had."

BMW takes a major step in its electric vehicle range with the New Class. The first models of the new series, a sports activity vehicle and a sedan, are set to hit the market in 2025, followed by a rapid introduction of additional models. The launch of at least six New Class models in BMW's global production network is planned within the first 24 months after the start of production.

In the quarter, deliveries of purely electric vehicles rose by 28% to 83,000 cars.

The group's margin before interest and taxes fell to 11.4% from 13.9%, but still exceeded consensus estimates that had expected 10.8%.

The group's EBIT fell to 4.05 billion euros from 5.38 billion euros last year. A consensus compiled by the company had seen EBIT at 3.96 billion euros.

The revenue decreased slightly by 0.6% to 36.61 billion euros.

For the full year, the company still expects a slight growth in global customer deliveries, with the EBIT margin of the automotive sector to be between 8% and 10%, and the group's pre-tax profit is expected to decline slightly.