BMW Ups EBIT Target

The great performances achieved by the automotive industry as a whole in the past year and in the first two months of 2011 have meant a great deal for an industry so battered during the crisis which hit it in 2009. Because of the great and quick recovery, most carmakers have announced new sales records in the months passed and greater sales and financial targets for the months to come.

In BMW's case, record after record of sales levels mean that for the current year the automaker can look forward to an EBIT margin of at least 8 percent, or the equivalent of over 1.5 million units sold. A new all time high, says BMW.

For the financial year which will soon start, the carmaker set an EBIT target of in between eight and ten percent for the Automobile segment and a return on equity of around 18 percent for the Financial business.

The new numbers are based on the strong results posted for last year. In 2010, revenues rose by 19.3 percent to EUR60,477 million, with the EBIT following suit and rising to EUR4,836 million. BMW reported a record net profit for the year of EUR3,234 million.

“We are extremely pleased with developments over the past financial year. We have set new records for revenues and group earnings and have more than achieved our targets for the full year,” said Norbert Reithofer, BMW chairman of the board.

“Continued rigorous implementation of our Strategy Number ONE has enabled us to make good progress in terms of profitability and efficiency. Our attractive range of models and strong sales volume growth have also contributed to the growth in earnings.“