Bayerische Motoren Werke AG, the world’s biggest manufacturer of luxury cars, reported the biggest profit in two and a half years after demand for the new 5 Series surged and sales advanced in China and the US.
Second-quarter net income gained almost sevenfold to 831 million euros ($1.1 billion) from 119 million euros a year earlier, the Munich-based carmaker said today. Profit beat the 546 million-euro average estimate of nine analysts surveyed by Bloomberg. Revenue rose 18 per cent to 15.3 billion euros.
Record sales in China, the world’s biggest auto market, and a rebound in the US have prompted BMW and rival Daimler to lift their 2010 forecasts. BMW has sold 25,000 of the new 5 Series since the sedan went on sale in Europe in March, the carmaker reported today. Daimler said last week its third quarter would be determined by how fast it could produce Mercedes-Benz brand cars to meet orders.
“Fantastic results,” said Aleksej Wunrau, an analyst with BHF-Bank in Frankfurt who has a “strong buy” recommendation on BMW shares. “It is the surprise of second-quarter reporting compared to predictions in the auto sector so far.”
BMW gained as much as 2.18 euros, or 5.2 per cent, to 44.05 euros, its highest level since November 2007, and was up 4.1 per cent as of 1:15 pm in Frankfurt. The shares have advanced 37 per cent this year, valuing the carmaker at 27.8 billion euros.
BMW raised its 2010 forecast on July 13, saying it expects sales to rise about 10 per cent to more than 1.4 million cars and sport-utility vehicles. The operating margin at the automotive division will jump to more than 5 per cent, the company said.
