Business

BMW profits driven by strong demand

Indian delegates and staff look at BMW Z4s Drive35i on display at The Hyderabad International Auto Show 2010 at The Hyderabad International Convention Centre (HICC) in Hyderabad on July 22, 2010
Image caption BMW has raised its sales forecasts for 2010

German carmaker BMW has reported a surge in profits, thanks to a recovery in global markets, demand from China and strong sales of new models.

The firm made 834m euros (£692.8m; $1.1bn) between April and June, up from 121m euros a year earlier. Sales climbed by 18.3% to 15.35bn euros.

The results impressed investors, pushing the firm's share price up by 3.1% in Tuesday trading.

BMW had already raised its 2010 sales and earnings forecasts last month.

Chief executive Norbert Reithofer confirmed the company aimed to boost full-year sales by about 10% to more than 1.4 million vehicles.

"We are aiming to achieve significantly higher group earnings in 2010 than in 2009," he said.

Asian growth

The number of BMW, Mini and Rolls-Royce cars sold rose by 12.5% in the quarter.

This included a 3.6% growth in Europe and a 5.6% rise in the US.

The most spectacular growth was seen in Asia, where quarterly sales were up by 59.4% at just under 70,000 cars.

More than 45,000 of these sales were in China and Taiwan - almost double the volume seen in the same period in 2009.

"Sharp sales volume growth on major markets and a high-value model mix are the main reasons for the strong second-quarter performance," Mr Reithofer said.

He added that improved economic conditions had allowed it to charge more for its cars, which had bolstered profits.

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