Tuesday, November 3, 2009
Significant Losses for BMW, but still Good Prospects
BMW, one of Germany`s leading carmakers reported a slump in earnings for the third quarter as a result of decline in consumer spending.
Net earnings of BMW sank 73.8 percent to 78 million Euros, but the carmaker expects to end the year with profit after signs of recovery emerged. Third quarter figures delivered that sales of Rolls-Royce and Mini BMW brands contracted 7.2 percent. The overall decline in 2009 is now 15.7 percent comparing with a year ago.
Norbert Reithofer, the BMW top manager says that stimulus measures already put in place now start taking effect increasing company efficiency and reducing costs. He predicts moderate recovery over 2010 and security on the car market.
In spite of all losses the board of managers is targeting to achieve positive net profit this year. Usually carmakers do not worsen at the end of the year. Last year BMW sold near 1.43 million vehicles.