BMW raised its profit forecast for 2010, the action jumps
July 13, 2010 – 2:05 pmBMW has raised its profit forecasts and sales volumes for 2010, on behalf of better than expected results from its automotive business and a strong demand for luxury cars worldwide.
At the Frankfurt Stock Exchange under the German automaker has surged 8.29% to 42.13 euros while the sector index 4.64% and clinching his archrival Daimler 5.39% 0 43.80 Euro .
Profit before tax in 2010 "to grow more strongly than expected," said BMW, but said that sales volumes would increase by approximately 10% to over 1.4 million vehicles.
The operating margin above 5% in the automotive business, while the BMW originally thought nearer 1% than 5%.
"BMW has finally raise its forecasts.This shows that what happens in the automotive sector is not only a rebound short term but a long-term trend, "said BHF Bank analyst Alexsej Wunrau
The Mercedes-Benz branch of Daimler, which has experienced record sales for the month of June, had raised its profit forecast in April.
BMW had reported last week a 13.7% increase in sales of BMW cars for the month of June, bringing in turn show a marked improvement in the premium segment of the automotive sector.
This can be explained by strong demand from Chinese consumers for brands considered prestigious.
By contrast, manufacturers of vehicles for a more market should massaged through a hard time with the end of programs "scrappage" worldwide.
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