• Germany's news in English

BMW sales and profits roaring ahead

AFP/The Local · 13 Jul 2010, 13:21

Published: 13 Jul 2010 13:21 GMT+02:00

Facebook Twitter Google+ reddit

The firm now expects to sell more than 1.4 million cars this year, around 10 percent more than the previous forecast, it said.

"Based on this much improved outlook, the BMW group expects full-year profit before tax to rise more sharply than previously forecast," BMW said, providing a profit estimate of more than five percent from core automaking activities.

On May 5, chairman Norbert Reithofer had said that BMW aimed "to achieve significantly higher group earnings" than in 2009, an upgrade from the previous outlook for "notable" growth.

On Tuesday, BMW shares soared 7.69 percent to €41.90 in midday trade after the news, compared to a rise of 1.46 percent for the DAX market of top German companies.

In addition to the recovery of global markets, "strong demand for new models such as the BMW 5 Series and BMW X1 has had a positive impact on the business development," the company said in a statement.

The firm sold around 13 percent more cars during the first half of the year compared to the same period in 2009.

German rivals Audi, which is owned by Volkswagen, and Mercedes-Benz have also posted strong first-half sales.

BMW warned, however, that its bullish prediction was dependent on the economic environment remaining favourable.

"Given that numerous economic risks remain in the second half of the year, the new outlook is based on the condition that the economic recovery continues and that general business conditions are not significantly dampened," it said.

Earlier Tuesday, the firm's personnel director Harald Krüger said in an interview with German business daily Financial Times Deutschland that soaring demand in China had outstripped local production capacity. As a result, the firm was now planning to ship 10,000 of its 3 Series models from Munich, southern Germany, to Chinese markets.

"We didn't expect such dynamic growth of this magnitude," said Krüger.

Story continues below…

In late April, the company raised its sales target for China, now the world's leading auto market overall, to 120,000 vehicles in 2010 from 100,000 in 2009.

BMW will release its quarterly report for the three months to June on August 3.

AFP/The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

06:30 July 14, 2010 by marimay
BMW is making the best looking luxury cars right now, that's why. Especially with the new 5 design. I want one.
Today's headlines
Outrage over ruling on 'brutal' gang rape of teen girl
The now convicted suspects, sitting in court in Hamburg. Photo: DPA.

A 14-year-old girl was gang-raped and left partially clothed and unconscious in freezing temperatures. Now prosecutors are appealing the sentences for the young men found guilty, most of whom will not set foot in jail.

Dozens of Turkish diplomats apply for asylum in Germany
Demonstrators holding a giant Turkish flag protest against the attempted coup in Istanbul in July. Photo: DPA.

Since the failed putsch attempt in Turkey in July, Germany has received 35 asylum applications from people with Turkish diplomatic passports, the Interior Ministry confirmed on Wednesday.

Hertha Berlin fan club criticised for 'anti-gay banner'
Hertha BSC beat FC Cologne 2-1. Photo: DPA

A 50 metre fan banner apparently mocking the idea of gay adoption has overshadowed Hertha BSC's win in the Bundesliga.

Germany stalls Chinese takeover of tech firm Aixtron
Aixtron headquarters in Herzogenrath. Photo: DPA

The German government on Monday said it had withdrawn approval for a Chinese firm to acquire Aixtron, a supplier to the semiconductor industry, amid growing unease over Chinese investment in German companies.

Politicians call for tough sentences for 'killer clowns'
File photo: DPA.

Now that the so-called 'killer clown' craze has spread from the US to Germany, elected officials are drawing a hard line against such "pranks", with some threatening offenders with jail time of up to a year.

Nearly one in ten Germans are severely disabled
Photo: DPA

New figures reveal that 9.3 percent of the German population last year were considered severely disabled.

The Local List
Germany's top 10 most surreal sites to visit
The Upside-Down House, in Mecklenburg–Western Pomerania. Photo: Olaf Meister / Wikimedia Commons

From upside-down houses on Baltic islands to a fairy-tale castle near the Austrian border, Germany is a treasure trove of the extraordinary.

Bavarian critics back Merkel for Chancellor again
Photo: DPA

The Christian Social Union (CSU) have long delayed backing Angela Merkel as their candidate for Chancellor in next year's general election. But now key leaders are supporting her publicly.

Four taken to hospital after hotel toilet bursts into flames
File photo: DPA.

Four guests at a Nuremberg hotel were taken to hospital due to smoke inhalation early Monday morning after a toilet there burst into flames.

Creepy clown scare spreads to Germany
Two of the clowns were apparently equipped with chainsaws. Photo: Pedro Pardo / AFP file picture

Police said Friday five incidents involving so-called scary clowns had occurred in two north German towns, including one assailant who hit a man with a baseball bat, amid fears that Halloween could spark a rash of similar attacks.

10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd