Connect with us

Hi, what are you looking for?


BMW astonishes with 11 fold jump in quarterly profit

FRANKFURT, Nov 3 – The world\’s leading luxury car maker, BMW, reported a huge leap in third-quarter net profit on Wednesday as recovering global markets snapped up its saloons (sedans) and sports utility vehicles.

BMW said its net profit leapt 11-fold from the equivalent figure last year, to 874 million euros (1.2 billion dollars), and stood by its sales target for this year and profitability targets for 2012.

"Strong demand for our models, a high-value model mix and the group\’s strong sales position on international automobile markets resulted in above-average earnings," a statement said.

Analysts polled by Dow Jones Newswires had forecast a slightly more modest gain of 914 percent to 791 million euros.

Sales in the quarter rose by 35.6 percent to 15.9 billion euros from 11.76 billion, exceeding the 14.27 billion euros expected by analysts.

Like many premium automakers, BMW suffered a heavy slump in 2009, though it still managed to post profits.

Core earnings at the German group this time around climbed to 1.19 billion euros from 55 million in the third quarter of 2009, but missed an average analyst forecast of 1.25 billion euros.

BMW said the group still planned to sell more than 1.4 million vehicles this year, and was aiming for a profit margin of between eight and ten percent for its core auto activities in 2012.

It also forecast "a significant increase in group pre-tax earnings for the full year 2010," but did not provide a detailed figure.

Advertisement. Scroll to continue reading.
Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...