News Column

BMW Profits, Sales Beat Forecasts

Nov. 6, 2012
BMW

The world's leading luxury carmaker, BMW, on Tuesday posted a jump of more than 17 per cent in profit in the third quarter, despite the signs of a deepening crisis in Europe's automotive sector.

The Munich-based group said pre-tax earnings climbed to 1.99 billion euros (2.6 billion dollars) in the three months to the end of September from 1.64 billion euros in the same period last year.

Analysts had predicted a rise to 1.644 billion euros. The company also confirmed its full-year business outlook.

"We have had a good third quarter, setting new sales volume, revenues and earnings records in the face of a challenging market environment," BMW chief executive Norbert Reithofer said in a statement.

BMW said revenue rose 14 per cent to 18.8 billion euros as strong demand from China helped to offset more subdued sales in Europe as the eurozone's long-running debt crisis and slowing economic growth affects the region's car sector. Analysts forecast of a rise in revenue to 17.86 billion euros.

The group's worldwide deliveries rose 9 per cent to 435,000 in the three months to the end of September.

BMW's stable of brands include its flagship BMW brand along with the compact urban Mini and top-of-the range of Rolls Royce.

The company's third-quarter net profit climbed 16 per cent to 1.28 billion euros, while earnings before interest and tax (EBIT) rose 14 per cent to 2 billion euros.

"We are on course to achieve new record figures for sales volume and pre-tax earnings in 2012," said Reithofer.

The carmaker said it expects to keep the full-year EBIT margin at its automotive operations at between 8 per cent and 10 per cent.




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Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH


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