BMW's investment in new models must raise profit in 2014

FRANKFURT, 6 may-BMW AG, the world's largest luxury automaker, unveiled a better than expected increase in first-quarter profit thanks to growing demand from China, and said that a series of new models will help you achieve record sales this year.
The German company is spending heavily in an attempt to stay ahead of the Audi, which has suffered from a lack of new models, and the Mercedes, which is still in the initial stage of their offensive to increase product line.
These BMW's spending impacted the profit before interest and taxes, which amounted to 2.09 billion euros, slightly above the average forecast of 2.05 billion euros (2.83 billion dollars) aimed at research from Reuters.
Despite the double-digit millionaire spent in investments and new models, which include the i3 electric vehicle, the BMW 4 series and a new Mini, the operating margin in the automotive business of BMW, the best indicator for comparison with the rivals, surpassed the expectations of analysts.
The profit margin before interest and taxes (Ebit) of the car division of BMW went from 9.5 percent in the quarter, a drop from the 9.9 percent recorded a year earlier, but above the 7 percent margin achieved by Mercedes-Benz Cars. Audi's margin was 10.1 percent.
The financial Vice President of BMW, Friedrich Eichiner, said that the momentum in selling cars will increase later this year as new products such as the Mini, are presented in showrooms in June and July. New products also enable BMW to raise margins, he said.
BMW reiterated its goal of achieving a significant increase in volume sold in 2014, to 2 million cars or more-before record of 1.96 million vehicles last year – but warned that political and economic uncertainty can impact sales in Europe.