Published on Thu, Mar 11, 2010 at 17:05 | Source : Reuters
Updated at Thu, Mar 11, 2010 at 17:53
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BMW profit beats estimates as cost cutting grips
BMW's 2009 pretax and net profit beat market expectations despite falling auto production as cost-cutting measures began to gain traction at the German premium auto maker.
BMW's 2009 pretax and net profit beat market expectations despite falling auto production as cost-cutting measures began to gain traction at the German premium auto maker.
BMW's full-year pretax profit of 413 million euros (USD 560.4 million) was easily higher than the 253 million euros forecast by analysts.
Net profit for 2009 sank 47% to 210 million euros but beat analyst expectations of 174 million euros.
Earnings before interest and taxes in the automotive segment rose to 93 million euros in the fourth quarter.
"We are cautiously optimistic going into the new year," Chief Executive Norbert Reithofer said, adding new models and demand in markets such as China and Brazil would continue to drive sales growth.
The results sent BMW shares 1.3% higher to 32.67 euros, outperforming the European car sector index.
BMW has forecast group retail volumes would grow by a single-digit percentage rate this year to over 1.3 million vehicles thanks in part to a raft of new models including the 5 Series saloon that hits dealerships this month and the September debut of the Mini Countryman SUV.
