The earnings figures follow a twenty-five% in which the European car market shrank 9.8 percent due to recession.
Company's drop in profit for the twenty-five% was smaller than its German competitors.
Current weakness of car markets in Europe, the BMW Group has made a great start to the new financial year 2013.
The maker of the 1-series compact and the X5 sport utility noted that its overall auto profit margin of 9.9 percentage, a key earnings figure, was near the top end of its 8-10 percentage goal. Profit margin is what's left over from the price after the expenses of making and selling the car. The group net profit figure also beat the estimate for 1.102 billion euros among analysts surveyed by financial information provider FactSet.
Munich-based BMW said earnings would continue to be affected by higher expenses for investment in new technology and production facilities. Renewing the model line with fresh designs and the latest technology is considered key to the automaker's profitability down the road. BMW's luxury brand identity also depends in part on deploying the latest technologies such as the lightweight carbon-fiber materials used in its i3 electric compact.
And the drop in profit was not as big as at Volkswagen, where earnings fell 38 percentage in the twenty-five%, or at Daimler, where they were off 60 percentage. U.S. based Ford Motor Co.'s European operation lost $462 million in the same twenty-five%.
BMW gave a cautious outlook, staying with its forecast for earnings "on a similar scale" to last year's and for increased in unit sales.
Numbers of vehicles sold improved in all regions, up 3.1 percentage in Europe, 5 percentage in the Americas, and 9.5 percentage in Asia. Europe's problems were evident in drops of 5.1 percentage in Italy and 7.4 percentage in France.
some of the experts said the twenty-five% was "not fantastic" but still "better than most of us had anticipated given some tough end market trends." He noted BMW sales growth has slowed in the key China market, and that a larger share of sales there came from lower-margin vehicles produced with local partner Brilliance, resulting in a less profitable product mix.
BMW shares rose 2.7 percentage after the announcement to 71.95 euros in morning trading in Europe.
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