Shares in German luxury carmaker BMW leapt today after third-quarter results topped most forecasts despite a dip in profits caused by tough market conditions and higher costs for new models.
The Munich-based group posted third-quarter pre-tax profit of € 567 million, down 4.9 per cent from the same period last year but above most analysts' expectations.
Analysts put BMW's pre-tax profit for the three months to September 30th at an average of euro 474 million and in a range of € 335-618 million.
At noon BMW shares were up 5.23 per cent at € 36.65, outperforming the Dow Jones European Auto Stoxx Index which was up 0.8 per cent.
Despite adverse market conditions, the company said it expected positive business developments to continue in the fourth quarter and stuck to its 2001 target of a return on sales for the group of at least six percent.
Amid profit warnings from other carmakers including Renault and Fiat after September's attacks on New York and Washington, BMW has been relatively upbeat about its prospects at least for this year
"The economic effects of the terror attacks in the USA are manageable on the basis of the currently available information," said BMW in a statement.
BMW has been a safe haven for investors in recent months due mainly to its focus on premium brands after disposing of its loss-making Rover subsidiary last year.
BMW stock is currently trading at the level it was at before the September attacks and also at the start of this year.
It has outperformed the Dow Jones Auto Index which has lost some eight per cent since early September and 13 per cent since the start of the year.