BMW AG said that its annual earnings will be significantly better than previously forecasted, thanks to soaring profits at its core automotive business and an extra 100,000 in vehicle sales.
“Thanks to strong demand on the international auto markets during the second quarter and for the full year, the BMW Group now expects that business performance and earnings will be significantly better than previously forecast,” BMW said in a statement. “It is therefore raising its sales volume and earnings forecast for the current financial year.”
BMW now forecasts that unit sales in 2011 will increase above 10% compared to the previous year to over 1.6 million BMW, MINI and Rolls-Royce brand cars.
“In view of the strong performance to date and the good outlook for the coming months, the Automotive segment is now expected to achieve an EBIT margin of over 10% for the full year, compared to the previous forecast of over 8%,” BMW said. “The BMW Group continues to target a return on capital employed (RoCE) in excess of 26%.”
– By: Omar Rana