BMW Group has forecast new records for sales volume, revenues and earnings for 2016, the company said at its annual accounts press conference here in Munich today (16 March).

It has set an EBIT margin target of 8-10% for the automotive segment and also targeted “slight” increases in sales volume and pre-tax profit.

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The group last week said it achieved its sixth record-breaking year in succession in 2015, posting new highs for sales volumes, revenues and profit before tax, despite a “volatile” market environment.

Automobile sales volume climbed by 6.1% to a new record of 2,247,485 units (2014: 2,117,965). With help from favourable currency factors, group revenues grew by 14.6% in 2015 to EUR92,175m (EUR80,401m).

Profit before financial result (EBIT) increased by 5.2% to EUR9,593m (EUR9,118m), mainly on the back of sales volume growth. Group profit before tax (EBT) rose for the first time above EUR9bn, increasing by 5.9% to a new high level of EUR9,224m (EUR8,707m). Group net profit rose for the first time above EUR6bn, increasing by 10% to a new record of EUR6,396m (EUR5,817m).

“We are targeting new highs for sales volume and group profit before tax,” said BMW management board chairman Harald Krueger at the conference.

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Group profit before tax is forecast to improve “slightly”. BMW said it benefits from its strong brands, an attractive product range and expectations international auto markets will “continue their generally upward trend” but cautioned these benefits were offset by rising personnel costs, intense competition and “high levels of upfront expenditure for new technologies”.

“The global political and economic environment is also expected to remain volatile,” the automaker said.

BMW’s automotive segment is targeting a slight sales volume increase in 2016 with boosts from the recently launched redesigned 7 series and X1 plus the new Mini Clubman.

Revenues are also expected to increase slightly and the targeted EBIT margin range of 8-10% remains unchanged for 2016.

Motorcycles will continue an upward trend this year with a slight increase in sales volume forecast for the full year.

Financial services “is likely to continue performing well in 2016,” BMW said. “Despite rising equity capital requirements worldwide, the [group] forecasts a return on equity in line with the previous year (20.2%), once again ahead of the target rate of at least 18%.”

BMW books record profits in 2015