8.21.2011

BMW results highlight global demand for luxury cars

German automaker BMW it would probably build its first assembly plant in Brazil after strong demand for luxury cars generated stellar earnings for the global leader.executive Norbert Reithofer news conference he saw a "high probabilitythat BMW will build a factory in Brazil, one of the most dynamic auto markets in the worldThe decision will be made later this year, Reithofer added after BMW posted a second quarter net profit of 1.81 billion euros ($2.58 billion), more than double that of the same period a year earlier.
Sales were 16.5 percent higher at almost 17.9 billion euros."We expect the business environment to remain favourable during the second half of 2011," the companya statement.BMW's second-quarter operating profit soared meanwhile by 66.3 percent to 2.86 billion euros.The results topped analyst forecasts compiled by Dow Jones Newswires for a net profit of 1.59 billion euros and an operating profit of 2.41 billion eurosInvestors welcomed the news and BMW shares jumped 1.88 percent to 68.98 euros in midday trading to top the main index which was 0.54 percent lower overall.
They closed the day down 2.57 percent as
slump intensified to 2.26 percent on eurozone debt crisis concerns.
"BMW's magnificent second-quarter results exceeded already heightened street expectations," Dow Jones quoted Sanford Bernstein analyst Max Warburton
The group, which also owns the Mini and Rolls-Royce brands, sold a record 450,608 vehicles over the three-month period, an annualised gain of 18.5 percent.For the first six months of the year, sales jumped 19.7 percent to 833,366.
BMW issued a new full-year target in July of more than 1.6 million sales.
The first half of 2011 has been the best six-month period in the BMW group's history," Reithofer noted in the statement.
BMW dealers have been delivering more cars worldwide, but especially in China and the rest of Asia, the industry's global growth engine.
China now represents almost 15 percent of the group's total sales, a level close to that of Germany itself.
"We are looking more and more in the direction of the
Reithofer commented in reference to Brazil, Russia, India and China
which owns Mercedes, and Volkswagen, which owns Audi, published solid quarterly results last week as well and raised their annual forecasts despite concern over debt problems in Europe and the United States.even been held back by production bottlenecks, the companywas working at 102 percent of capacity and that it might also make a substantial investment in itsThe BMW statement noted that sales and earnings growth would also "be held down during the second half of the year" by changes to some popular models and costs stemming from thelaunch of others.


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