BMW expects good 2005 despite euro pressure

16th March 2005, Comments 0 comments

16 March 2005, MUNICH - German carmaker BMW is feeling the pressure from the strong euro, tougher competition and high raw materials prices, but expects to show steady profits in 2005, company chief executive Helmut Panke said on Wednesday.

16 March 2005

MUNICH - German carmaker BMW is feeling the pressure from the strong euro, tougher competition and high raw materials prices, but expects to show steady profits in 2005, company chief executive Helmut Panke said on Wednesday.

At a press conference discussing BMW's 2004 record-setting performance and looking to prospects for this year, Panke said the main goal this year is to be able to match the previous earnings.

He said BMW expected to achieve record-high car sales in 2005. Sales were on course to set a new record in the first quarter of the year ending 31 March.

In a company statement BMW said that "some adverse factors will arise in 2005 as a result of a combination of increased market competition, the effect of the US dollar exchange rate and an above-average increase in the price of important raw materials.

"Despite these adverse factors, the BMW Group aims for 2005 to achieve approximately the high earnings level of 2004," the statement said.

Car industry analysts, judging from previous BMW statements about earnings, said this could signal that profits in 2005 could actually decline by as much as ten percent.

With BMW calling 2004 the best year in the company's history, the BMW Group achieved net profit of over EUR 2.22 billion, up 14.1 percent from the year before. Operating profits were up 10.9 percent to EUR 3.55 billion.

Revenues, at EUR 44.34 billion, were up 6.8 percent on 2003 figures despite adverse currency effects, BMW said. Car deliveries in 2004 reached 1,208,732, up 9.4 percent from 2003.

"The BMW Group has continued to strengthen its earnings power and competitive position over the past year," Panke said.

"The success achieved during the past year shows that our product and market initiative is now paying off and generating the desired results," he added.

DPA

Subject: German news

0 Comments To This Article