Bayerische Motoren Werke AG, (BMW), the world’s largest automaker of premium vehicles said net profit rose 23.8 per cent in the third quarter (1,082 million) on stronger sales of X3 sport-utility vehicle and 5-Series sedan.
The company’s results were slightly higher than analyst expectations and it reaffirmed its profit target for the year.
Revenues rose by 3.8% to euro 16,547 million (2010: euro 15,940 million). The third-quarter profit before financial result (EBIT) climbed by 44.0% to euro 1,716 million (2010: euro 1,192 million) and the profit before tax (EBT) went up by 21.0% to euro 1,644 million (2010: euro 1,359 million).
“We achieved new records for sales volume, revenues and earnings,” BMW Chief Executive Norbert Reithofer said in a statement.
BMW who runs all the factories at 110% capacity to keep up with demand repeated that it wants to sell more than 1.6 million vehicles this year for the first time.
‘Current business developments do not give any indication of a deterioration in earnings for the year as a whole. We forecast that profitability will be maintained during the final quarter at a high level,’ BMW said.
However, It said global auto markets were slowing and that it saw “some dark clouds on the horizon,” citing risks from high levels of government debt in Europe and the United States.
In the third quarter, the segment’s EBIT margin widened to 11.9 percent from 8.1 percent a year earlier.
BMW also said it still aims to reach an EBIT margin of 8-10 percent in 2012.
BMW shares were up 0.43 (0.74%) on Thursday morning after the announcement. Last Trade: 58.40