GERMANY: BMW forecasts sharp 2010 improvement
BMW is forecasting improved profit and sales up 10% to more than 1.4m units this year as the economic climate improves.
The automaker thinks it will post better second quarter and full year earnings after announcing it sold 13.1% more vehicles in the first half of this year compared to H1 2009.
Along with recovery of global markets, the company noted strong demand for new models such as the 5 series and X1 had boosted growth.
BMW Group is now forecasting full-year EBIT margin of over 5% for its automobiles segment while financial services is targeting a return on equity of over 18 %.
It said in a statement: "Given that numerous economic risks remain in the second half of the year, the new outlook is based on the condition economic recovery continues and general business conditions are not significantly dampened.
"For 2012, the group continues to target an EBIT margin of between 8% and 10% and a return on capital employed (ROCE) in excess of 26% for its automobiles segment. The financial services segment is aiming to achieve a return on equity of at least 18%."