BMW's Q3 earnings surge as sales power ahead

BERLIN: Luxury auto maker BMW AG says its third-quarter earnings have surged as revenue increased by more than a third thanks to the economic recovery and better selling prices.

BMW on Wednesday reported net profit of euro871 million ($1.22 billion) for July-September _ up from a meager euro76 million a year earlier. Revenue increased 35.6 percent to euro15.94 billion from euro11.76 billion.

BMW says its pre-tax profit of euro1.36 billion _ up from euro126 million a year earlier _ was its highest ever for a quarter. Unit sales rose 13 percent to 366,190 from 324,100.

The company said it is raising its full-year outlook and now expects a margin on earnings before interest and taxes at its automobile segment of more than 7 percent up from over 5 percent.