Bentley Motors slightly boosted operating profit in the first quarter of 2008 despite a slight decrease in sales.
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Net revenue fell 4.4% (EUR15m) to EUR338m year on year, primarily due to exchange rate effects, the company said. But operating profit increased EUR1m to EUR39m.
Global sales fell 17.8% to 2,292 units.
The company cited “calendarisation” as the reason, saying the first quarter of 2007 saw the launch of the Continental GTC which, like most new model introductions, attracted considerable initial sales before settling down to a more consistent pace throughout the year.
“Taking out this seasonal adjustment, the sales pace in 2008 is broadly consistent with 2007,” Bentley said.
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By GlobalDataNorth American sales were down around 22%, in particular on the west coast and in southern regions, which have been affected by the credit crisis and declining property markets.
However, strong growth in emerging markets such as China, up 133.3%, and the Middle East, up 10.4%, is having a compensatory effect.
Arnage and Azure family sales decreased by 15.9% in the first quarter; however, with deliveries of Brooklands beginning, sales are expected to increase in the second quarter. Strong demand continues for the Continental GT Speed resulting in a first quarter sales increase of +20.8% across the Continental GT model line.
“Coming after a milestone year in 2007 when the company surpassed the 10,000 model sales mark for the first time, these results were to be expected”, said Stuart McCullough, board member for sales and marketing.
“However, when we take into consideration the fast start we achieved in 2007 with the Continental GTC and the nervousness that surrounds the financial markets, then Bentley sales are proving to be very resilient, and our overall pace remains similar to last year.
“We still expect our annual sales performance to be at around the same level as 2007, but also to maintain our profitability despite the challenging exchange rate impacts.”
