http://www.businessweek.com/ap/finan.../D8NO89F81.htm

"BMW profit rises in 2006
By DAVID RISING

BMW AG, the world's largest premium automaker, said Thursday its profit rose 28 percent in 2006, boosted by a one-time gain from the sale of a stake in British aircraft engine manufacturer Rolls-Royce PLC and strong car sales.

The company said it was seeking approval from its board to buy back up to 10 percent of its share capital, and announced it would increase dividends.

Net profit climbed to a new high of 2.87 billion euros ($3.77 billion) from 2.24 billion euros the previous year. Analysts polled by Dow Jones Newswires had forecast profit of 2.77 billion euros ($3.64 billion).

Profit before taxes rose to 4.12 billion euros ($5.41 billion), up 25.5 percent from 3.29 billion euros the previous year and in line with analysts' expectations.

Earnings were bolstered by a one-time gain of 372 million euros ($488.62 million) from the settlement of an exchangeable bond on shares in Rolls-Royce.

"The past year has been the best financial year so far in the company's history," said management board chairman Norbert Reithofer. "We were able to achieve, and in some areas, do even better, than the targets we had set ourselves for 2006."

Higher costs resulting from unfavorable foreign exchange rates and rising commodity prices were offset to a large extent by improvements in efficiency, growth in sales and an improved model mix, the company said.

In January, the Munich-based automaker reported record sales, up 5 percent to 49 billion euros ($64.36 billion).

The number of BMW brand cars sold increased by 5.2 percent to 1,185,088 units

Sales of the Mini slumped 6.2 percent to 188,077 units, because of restricted availability caused by capacity extension measures at the Oxford, England plant. But the second generation of Mini was launched in Europe in November and the company said sales volumes should pick up this year enough to "exceed the previous high level registered in 2005."

Rolls-Royce Motor Cars recorded a small increase in sales volume, with 805 Phantom vehicles sold in 2006 compared to 796 in 2005.

"We are aiming for a new sales volume record in 2007," Reithofer said. "All three brands are expected to post new sales volume records."

BMW's motorcycles business also continued to perform well, with the annual sales volume surpassing the 100,000 mark for the first time, rising 2.7 percent to 100,064 units.

Fourth quarter results were not released, and BMW's management was expected to elaborate on the financial results of the full year and give a 2007 earnings outlook at its annual news conference on March 14

Stephen Cheetham, a senior analyst with Sanford C. Bernstein Ltd., said the share buyback plans and the announcement of a 9 percent dividend increase to 70 euro cents from 64 euros cents "should underpin positive sentiment."

"While no 2007 earnings guidance was given, we expect the currency headwind to abate and product mix to improve in 2007 as sales of the 3 series, X5 and Mini gain traction," Cheetham said.

Its shares rose 0.07 percent to close at 42.61 euros ($55.95) in Frankfurt."





Looks like a company thats got its shit together and is working for its share-holders...

 

no doubt BMW had a awesome year. With the release of the Z4 Coupe, 335i, and the new X5 their doing it really well..

 

they are releasing some sweet cars.

 

Good to see they're doing their best ever. It's too bad I'm not into several of their cars. The only ones I really car about at the moment are: M5, Z4M coupe, 335i. The 6 still really bugs me.

 

I'm sorta what you would call an "old-school" bmw enthusiast. I've had 5 bimmers... been my only cars since I got my license. My mom has had a couple, my sister has had a couple, and so on.

Basically, all I have to say to all those people saying how BMWs new designs are nasty and bad mouthing them all the time, is to look at sales and profits... they have been continualy increasing over the past ten years.

 

its those damn teenagers getting their 330's cuz they can't afford the m3.
ahha jk, but i do seem to see too many 3 series on the road these days.

But hey, good for BMW right?

 

There going to get their profits off of me also. A 135i will be my next car.

 

their success stems in large part because they are privately owned. they are able to make long term decisions without answering to stock analsysts and the like, only able to plan a quarter ahead.

 

Too bad Z4 is still not selling all that well... even with the coup

 

I think the z4 vert. probably gave people a really bad taste in there mouth. Plus they dont advertise the coupe! No commercials or anything. It has been out a little while now and I have only seen one of them. i made a u-turn so fast so i can see it. Its there fault. I dont think they want to mass produce it.(the price is high for a non-m)