Shares of German automaker BMW reached a record high after the automaker predicted significant gain this year relying on high demand for models such as the i8 sports plug-in hybrid car and the 4-Series Gran Coupe.
Chief Financial Officer Friedrich Eichiner said that pretax profit is expected to surpass the 7.91 billion euro reached in 2013 and earnings are to be lifted thanks to 16 refreshed and new models, but also lower development speeding.
“BMW gave a surprisingly positive outlook,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler.
“They seem to be getting out of a phase of stagnation quicker than expected.”
The competition among the German luxury automakers reached a new level as Audi has already managed to surpass BMW in sales during the first two months of this year. Mercedes-Benz, currently on the third place, does not give up easily and has increased deliveries faster than its two rivals over the past months.
“We will remain the world’s leading premium car company this year”, said Chief Executive Officer Norbert Reithofer. “We remain very confident about the business year 2014,”with sales volumes set for a “significant increase.”
BMW’s shares have increased 7.3% to 86.60 euro, almost reaching the highest price since 1926, the year the German automaker was first listed. Over the past 12 months the stock increased 25% rising the company’s value to 55.4 billion euro.
update:- BMW’s share price: 87.90 euro/share (3/20/2014 – 12:35 GMT)- the highest level since 1926!