Connect with us

Economic News

Bentley’s Profits Soar After Cars Sink



Despite the fact that several vehicles were lost at sea and trapped in China, Bentley made a profit during the first quarter of 2022.

Bentley, a prestigious British automobile maker, reported a 162 percent increase in first-quarter operating income over the same period last year, owing to growing vehicle costs offsetting the loss of some ships at sea and China pandemic-related delivery difficulties. The Volkswagen (VOWG) subsidiary said strong consumer demand for new models drove a 13 percent increase in vehicle sales to 10,207 cars during the January-March period. Chief executive Adrian Hallmark said in a statement. “Our strong performance in the first quarter is testament to the hard work of our colleagues around the world.”

Chinese sales were badly hit by pandemic factory closures, which hampered the ability to move vehicles across long distances by road. The effects were most keenly felt in China, which is Bentley’s largest market. Bentley’s sales in China plummeted by 65% in the first half of 2020 as a result of the pandemic. However, despite this devastating blow, the company’s profits soared by 25%. Following a record year in 2021, Bentley sales were expected to decline due to ongoing pandemic travel restrictions. Conversely this led to more disposable income for wealthy customers and boosted premium and luxury vehicle sales in important global markets like China and the United States. The pandemic has been a mixed blessing for the company. On the one hand, it has severely hampered sales in China, Bentley’s largest market. On the other hand, it has led to increased demand for luxury vehicles in other markets as wealthy customers look for ways to spend their extra disposable income.

Looking forward, Bentley is optimistic that sales will rebound as the pandemic eases and travel restrictions are lifted. In the meantime, the company is focusing on its new line of electric vehicles, which it hopes will appeal to a new generation of luxury car buyers. Vehicle sales fell 5% to 3,203 units in the first three months of the year, with revenue dropping 9% in the Americas and 29% in China. The company’s operating profit margin rose to 11.4% in the first quarter from 10.9% a year earlier, helped by cost-cutting measures. Bentley is owned by Volkswagen Group (VOWG), which has been hit hard by the pandemic with its sales falling across all its major brands. The German carmaker is banking on a shift to electric vehicles to revive its fortunes and has said it plans to invest about 33 billion euros ($40 billion) by 2025 in the development of new technologies.

Bentley’s sales had been declining since hitting a peak of 11,020 cars in 2018. The average revenue per vehicle rose 15% to 212,000 euros (nearly $223,257) from 184,000 euros a year earlier as customers chose for more personalized choices. According to Hallmark, clients have embraced the ability to customize seat leathers, stitching, seating layouts and a variety of other features. Dealers are doing limited editions, special packages for individual clients, and demand is growing,” he said. In terms of revenue, Bentley’s earnings increased by 41% to 813 million euros from 578 million a year earlier, while operating income rose to 170 million euros from 65 million. Profits were also bolstered by an organizational transformation that began in 2018, when the brand cut around 1,000 jobs.

The company is also working on an all-new electric vehicle, due to be released in 2025. Despite a challenging macroeconomic environment, we have delivered a strong performance” said Bentley Motors Chairman and CEO Adrian Hallmark. “We have continued to invest in our product offensive, which is now bearing fruit with the launch of new products such as the Bentayga Hybrid and Continental GT Convertible. Our focus on operational excellence is also paying dividends, with a substantial improvement in our cost base. We are confident that we can continue to make progress in the second half of the year and deliver another strong financial performance.” Bentley will continue its product offensive later this year with the launch of the new Flying Spur and the all-new Bentayga V8. The Flying Spur will be Bentley’s first ever four-door sports car, while the Bentayga V8 will offer customers a more performance-focused option in the SUV range. Both cars are due to be revealed later this year.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply


© Copyright 2022 | All Rights Reserved RISK DISCLAIMER There is a very high degree of risk involved in trading. Past performance is not necessarily indicative of future results. Financial Wars and all individuals affiliated with this site assume no responsibility for your trading and investment results. All the material contained herein is believed to be correct, however, Financial Wars will not be held responsible for accidental oversights, typos, or incorrect information from sources that generate fundamental and technical information. Options trading carries significant risk. Futures and futures options trading carries significant risk. Trading securities, security options, futures and/or futures options is not for every investor, and only risk capital should be used. You are responsible for understanding the risk involved with trading options. Prior to trading any securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of Financial Wars may have a position or affect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. All of our partners or affiliated companies are in no way associated with the proprietary information provided by the Financial Wars Trading Method or software. All returns are based off buy side analysis and do not include commission costs. All projections are based on current returns. The projections do not account for any possible draw down effects on performance and performance projections. Actual returns and projected returns may fluctuate over the course of the service. "VIP" or "Lifetime" designation refers to the lifetime of the product only and not to be assumed to be the lifetime of any individual. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves and hereby and absolutely agrees to indemnify and hold harmless Financial Wars, its principals, agents and employees. As a Student and Chat Subscriber, we ask that you please cross check the information posted here. We ask that you challenge any information you feel is incorrect. We do not guarantee any of the information that is posted in the chat. All company names are trademarks or registered trademarks if their respective holders. Use of a mark does not imply any affiliation or endorsement by them.

Social Media Auto Publish Powered By :