BMW said yesterday it expects earnings to stagnate this year as costs for 11 model launches, the development of fuel-efficient technology and expanding production eat up higher profits from rising car sales.
“We expect to report group profit before tax on a similar scale to 2012,” chief executive Norbert Reithofer said during the group’s annual earnings conference, citing investments in new technologies and in the company’s production capabilities.
In 2012, BMW posted earnings before tax of €7.82bn (£6.68bn).
The Munich-based company forecast volume globally would rise by a single-digit percentage rate from about 1.85m vehicles sold last year, thanks to new models like the 4 Series Coupe due in September.
Meanwhile luxury motor marque Bentley – part of Volkswagen – said total turnover rose by 29.9 per cent to €1.453bn in the year to 31 December 2012, with operating profit jumping from €8m to €100.5m.
Bentley, whose models – including the Continental – start at well over £100,000, sold 2,457 in its biggest market of the US, up 22 per cent from last year. Deliveries to the Middle East and to Asia each grew by 44 per cent.
City A.M. Reporter