The largest luxury cars manufacturer in the world – Bayerische Motoren Werke AG (BMW) surprisingly posted a 4.2% growth of its fourth-quarter profit due to increased demand for the companys 3-Series sedan and wagon.
Mr. Norbert Reithofer, who is the Chief Executive Officer of the company, said in a statement, which was cited by Bloomberg: “We forecast further sales volume growth in the current year which will again bring us a new all-time high.” As reported by the Wall Street Journal, he also said: “We should exceed the threshold of two million vehicles.”
Bayerische Motoren Werke AG made an official statement revealing that its earnings before taxes and interest increased from 1.87 billion euros for 2012 to 1.95 billion euros (2.72 billion dollars) in the fourth quarter of 2013. According to data compiled by Bloomberg, this result surpasses the average analysts forecasts estimated to 1.83 billion euros.
The company has also proposed to boost its dividend by 5% from 2.50 to 2.60 euros a share and explained that it continues to make serious investments in new production capacity, technology and development of new models. The preliminary earnings cited in BMWs statement were said to have increased by 9.5% to 1.31 billion euros in the three months through December 2013. The revenue of the company was reported to have declined by 1.6% reaching 20.21 billion euros. Bayerische Motoren Werke AG revealed that its operating profit margin was 9.2%.
The company is becoming more focused on making investments in technology as well as expanding its production in order to maintain its leading position ahead of Audi and Mercedes-Benz. Both of BMWs rivals are aiming at taking the leadership in the segment by the end of the decade.
One of the analysts at International Strategy and Investment Group – Erich Hauser – said for Bloomberg: “BMWs numbers look good. The fourth-quarter margins were stronger than expected.”
Bayerische Motoren Werke AG jumped by 2.36% in Frankfurt by 13:32 GMT to trade at 82.13 euros, marking a one-year change of +15.31%. According to the Financial Times, the 31 analysts offering 12 month price targets for Bayerische Motoren Werke AG have a median target of 85.00 euros, with a high estimate of 120.00 euros and a low estimate of 63.00 euros. The median estimate represents a 5.93% increase from the previous close of of 80.24 euros.
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