BMW Expects Flat Profit Before Interest in 2013 image

BWM said it expects profit before tax in 2013 at the same level as in 2012, due to high investments for new models and technologies.

The company also said it is cautious regarding the outlook for 2013, as the difficult economic environment continues to persist in Europe. Last year, BMW sold 1.85 million vehicles, an increase of 10.6% from 2011.

“We are aiming to achieve a further rise in unit sales in the current year and hence a new sales volume record,” said Norbert Reithofer, chairman of the board of management.

BMW plans to sell more than 2 million vehicles by 2016 and said it will continue to make heavy investments to boost capacity this year, due to strong demand for its vehicles. The automaker added that the costs for the development of vehicle concepts and new technologies will also continue to increase.

The German automaker plans to launch 11 new models this year and 25 new models by the end of 2014. The company said it already has several hundred pre-orders for the BMW i3. BMW continues to predict an EBIT margin varying between 8% and 10% this year for the automotive segment. The automaker relies on its ‘Strategy Number ONE’ to increase profitability and become more competitive.

“We have now successfully implemented the first third of our strategy. All interim targets have been fully attained,” Reithofer stated.