Record sales, but BMW says more to come

Company aiming to make more than 2 million vehicles

BMW says it is spending a lot on new technologies.Picture / AP
BMW says it is spending a lot on new technologies.Picture / AP

German carmaker BMW says it expects pre-tax profit to rise sharply this year after the group reported record sales and earnings last year.

"The BMW group can look forward with confidence to the current financial year," chief executive Norbert Reithofer told the carmaker's annual earnings news conference.

Group profit before tax and sales volume are both expected to rise to new highs, he said.

"We are aiming to achieve a significant rise in sales volume in 2014, which would take us to a new all-time high of over two million vehicles," the chief executive said.

"We expect group profit before tax to rise significantly in the current year despite ongoing volatile business conditions," Reithofer said.

However, the pace at which earnings increase would be affected by high levels of expenditure for new technologies and by rising personnel expenses, Reithofer cautioned.

As already reported, BMW achieved record earnings and sales for the fourth year in a row in 2013.

Net profit rose by 4.5 per cent to €5.34 billion ($8.6 billion) last year.

Revenues slipped by 1 per cent to €76 billion, but unit sales jumped by 6.4 per cent to a record 1.9 million.

-AFP

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