BMW posts 11-fold jump in Q3 PAT to $1.2 bn

NEW YORK: The BMW Group reported an eleven-fold jump in profit after tax to 874 mn euros ($1.2 bn) for the July-September quarter on the back of smart sales growth in the Asia region, especially China.

In the year-ago period, the company had registered a profit after tax of 78 mn euros, BMW Group said in a statement.

The German car-maker's revenues rose by 35.6 per cent vis-a-vis the year-ago period to 15.94 bn euros for the third quarter ended September, 2010.

During the quarter, the company sold 366,190 vehicles, an impressive 13 per cent compared to the year-ago period.

"Our attractive model range and the recovery of the global economy have enabled us to achieve another significant rise in sales volumes. Measures taken to boost profitability and a renewed high-value model mix have also had a positive impact," BMW AG Chairman Norbert Reithofer said.

Meanwhile, the auto giant said sales growth was recorded in almost all markets -- China and America in particular -- during the first nine months of the year.

The BMW Group's sales in Asia climbed by 59.4 per cent to 206,490 units in the January-September period. The company recorded almost 100 per cent growth in sales to 132,270 units in the China market.

During the nine-month period, the company sold 192,569 units, 7.4 per cent more than the same period of the previous year, in its largest market, the USA. The number of cars sold by BMW also rose by 3.2 per cent to 577,626 units in Europe.

The company expects that its growth momentum will continue and raised its earnings forecast for the current financial year.

The BMW Group raised the profit margin target for its car segment to more than 7 per cent from the earlier estimate of 5 per cent for the full year. The forecast for financial services remained unchanged, with a sharp improvement in profit before tax and a return on equity of over 18 per cent predicted.

The company said sales volumes will continue to grow in the coming months, thanks to new models. The company forecast robust double-digit sales volume growth for the fourth quarter and was confident that sales volumes for the full year will increase by more than 10 per cent to over 1.4 million vehicles.