Bmws Pretax Profit To Ascend This Year
The Bayerische Motoren Werke AG BMW announced last Wednesday that its pretax profit this year was set to rise above the 4.12 billion euros it posted in 2006 on the sentiment that its car sales would also rise.
Norbert Reithofer the chief executive of BMW said the company planned “to beat the record pretax profit achieved in 2006.” Last week the automaker reported a 26 percent increase in 2006 pretax profit from 3.29 billion euros 4.35 billion in 2005 to 4.12 billion euros 5.45 billion in 2006.
BMW also reported 28 percent increase in net profit to 2.87 billion euros 3.79 billion. The profit boost was attributed to the onetime gain from the sale of a stake in RollsRoyce PLC the British aircraft engine maker.
Reithofer said that the rising euro and higher costs for the raw material it uses to make cars would “impact business performance for the current year albeit to a lesser degree in the previous year.”
Reithofer did not mention a specific forecast but in 2006 those issues injure the earning potentials of the automaker by about 844 million euros 1.12 billion. He said the company expects to report higher sales through the rest of 2007 in the upper singledigit percentage range. “We intend to sell more than 1.4 million vehicles” he added. “This year we expect a moderate start to be followed by strong increases mainly in the second half of the year.”
BMW has several new models including the 3Series convertible a retooled X5 and new versions of its 5 and 1Series models. The 3Series convertible which has debuted at the North American International Auto Show NAIAS in Detroit in January this year comes with a retractable hardtop with a poweroperated threepiece steel roof the iDrive with programmable memory keys a twinturbocharged 3.0liter inline sixcylinder engine direct injection and a BMW cold air intake.
The BMW X5 on the other hand is a midsize luxury crossover SUV based on the E39 5 Series. The vehicle features all wheel drive and a line of straight6 and V8 engines. The 3.0 L diesel engine is offered for the nonUS models.
The updated E60/E61 5Series features new front and rear bumpers restyled front and rear headlights a refreshed interior and the addition of the new BMW DriveByWire system. The 1Series on the other hand introduces a 3door sports hatch variant that is equipped with new front rear bumpers and a modified vehicle interior.
About the writer: Given her background on cars as an auto insurance director Lauren Woods finds the world of cars to be constantly changing.
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