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Profit of BMW increased 7 times for the second quarter

Bayerische Motoren Werke AG (BMW) - the largest maker of luxury cars in the world, reported its largest gain of two and a half years. Net profit for the company's second quarter increased 7 times yoy to 831 million, with an average forecast of 546 million analysts interviewed by the agency. The revenue for the quarter increased to 18% annually to 15.3 billion, aided by increased demand for the new fifth series and increased sales in China and the U.S. "The sharp increase in sales of major markets and product portfolio focused on high value segment, the main reason for good performance in the second quarter," said Chief Executive Norbert Raythofer of BMW. "We have a lot of progress in achieving targets on profitability," he said. Record sales in China - the largest market for cars in the world, and the recovery of the U.S. market forced BMW to raise its forecast for this year. On July 13 the company said it expected its sales for 2010 to increase by about 10% to more than 1.4 million vehicles. BMW, which also makes Mini and Rolls-Royce, has sold 13% more cars in the first half of 2010 compared to the same period last year. "Fantastic results," said Alexei Vunrau, an analyst at BHF-Bank. "It is surprise among the accounts for the second quarter compared to forecasts for the sector so far."
The Bavarian company shares rose by around 4% in early trading today on the stock exchange in Frankfurt as the beginning of the year they have increased by 36%. The company's market capitalization amounted to 27.6 billion. Furthermore, out in March a new fifth series, which have been sold 25 thousand cars this year BMW will launch a new X3, and the first model of the Mini with four doors - Countryman, which is expected in September.