BMW steers to bumper profits in 2011

By Staff Reporter
AFP Global Edition

Mar 08, 2012 06:26 EST

German top-of-the-range carmaker BMW said on Thursday that 2011 was a bumper year, with new records in unit sales, revenues and profits, and it expected to continue to grow again this year.

BMW said in a statement it booked net profit of 4.907 billion euros ($6.5 billion) in 2011, an increase of 51.3 percent year-on-year, and pre-tax profit rose by 52.1 percent to 7.383 billion euros.

Unit sales were up 14.2 percent at 1.669 million vehicles, pushing up revenues by 13.8 percent to 68.821 billion euros, the statement said.

"Last year was the best in our history. We achieved new records in unit sales, revenues and earnings," boasted chief executive Norbert Reithofer.

Alongside its flagship BMW brand, the carmaker also produces Mini and Rolls-Royce cars, and motorbikes.

Unit sales of the main BMW brand were up 12.8 percent, Mini sales raced ahead by 21.7 percent and Rolls-Royce were up as much as 30.5 percent.

That pushed the automobile division's pre-tax earnings up by 75.5 percent to 6.823 billion euros or 92 percent of the group total.

The financial services division reported a 47.4-percent increase in pre-tax earnings to 1.79 billion euros.

Shareholders would also participate in the carmaker's success, with the dividend payout being increased by 1.0 euro to 2.30 euros per share, Reithofer said.

Looking ahead, BMW said it expected to be able to lift sales again this year.

"After our sales record of last year, we expect to be able to increase the number of deliveries again in 2012," Reithofer said.

BMW shares were higher in line with overall market on the Frankfurt stock exchange on Thursday, adding 1.45 percent to 69.26 euros.

Source: AFP Global Edition


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