Germany's BMW reported a sharp rise in second-quarter profits today.
The luxury car-maker said profits from ordinary activities for the three months rose 62.3 per cent to euro 847 million from a year ago - well above an average forecast of euro 787 million among 12 analysts.
BMW also said it expected a significant improvement in 2001 group results, despite the costs related to the introduction of the new Mini and the forthcoming new 7-Series. It also repeated an earlier forecast that it would sell over 900,000 vehicles this year, up from 822,181 in 2000.
The group posted a second-quarter net profit of euro 525 million, up from euro 232 million a year ago, and sales rose to euro 10.608 billion, a 27.6 per cent rise from a year ago if adjusted for the sale of Rover.
BMW said second-quarter profits from ordinary operations at its automobile segment rose 4.9 per cent to euro 764 million.
The profit announcement sent BMW shares higher, as it continued to gain from a renewed focus on its premium brand.
The company has proved to be more resistant than some rivals to the effects of an economic slowdown on demand for cars, especially in the US, where July sales jumped 25.6 per cent.