BMW is on track to increase profit in 2012 after posting third-quarter earnings that beat analysts’ expectations.
Third-quarter earnings before interest and taxes rose 14 percent to 2 billion euros ($2.6 billion), helped by a 16 percent gain in profit at the financial services division. Sales rose 14 percent to 18.8 billion euros, while net income climbed 16 percent to 1.29 billion euros.
The world’s No. 1 luxury carmaker was also helped by strong demand in the United States and China. BMW plans to increase sales in China by more than 10 percent, more than the overall market.
BMW has so far remained untouched by the sovereign-debt crisis, which is set to cause the biggest drop in demand in nearly two decades this year in Europe. The Munich-based brand today announced that it doesn’t need a special savings program. However, BMW is starting to feel the effects of the crisis. “Like the rest of the sector, we are now beginning to feel some headwind. Competition is intensifying and risks are increasing,” BMW CEO Norbert Reithofer said.
Despite the gloomy future ahead of the auto industry, BMW stuck to its full-year target of beating last year’s pretax profit of 7.38 billion euros. In the first nine months of the year, BMW delivered 1.11 million cars globally, 12 percent more than in the same period last year.