By William Boston 

MUNICH-- BMW AG, the German luxury car maker, reported a 8.2% rise in net profit in the first three months of the year despite a slight drop in revenue and a decline in operating profit at its core automotive division.

The Munich-based auto maker said net profit rose to EUR1.64 billion ($1.90 billion) in the three months to March 31 from EUR1.52 billion in the same period last year on revenue of EUR20.85 billion, down 0.3% after currency swings offset a 6% rise in vehicle sales.

Earnings before interest and taxes, a key measure of BMW's operational performance, fell 2.5% to EUR2.5 billion, reflecting a 1.7% decline at the group's automotive division which includes the BMW, MINI and Rolls-Royce brands, and a drop of 18% at its motorcycle unit.

In contrast, BMW benefited from an improved performance from its financial-services unit and a lower tax charge.

"Our first-quarter performance is further proof of our ability to generate positive earnings with our core business, despite a volatile environment," said Chief Executive Harald Krüger said Tuesday. "The decisive factor for us isn't short-term profit but sustainable, profitable growth."

Sales of the BMW brand vehicles achieved a record in the period, rising 6% to 478,743 vehicles, driven by sales of the BMW flagship 7-series, the X1 compact sport-utility vehicle, as well as the X3 and X6 SUV models.

Looking ahead to the full year, BMW reaffirmed its outlook for slightly higher earnings and revenue. The EBIT margin at the group's automotive division is expected to be within a range of 8% and 10%, Mr. Krüger said. It was 9.4% in the first quarter.

The results were largely in line with analysts' expectations.

"BMW's outlook remains unchanged for a slight increase in group EBIT. Overall, a solid start to the year," Arndt Ellinghorst, head of automotive research at Evercore ISI, said.

--Friedrich Geiger contributed to this article.

Write to William Boston at william.boston@wsj.com

(END) Dow Jones Newswires

May 03, 2016 03:30 ET (07:30 GMT)