BMW aims for positive earnings by year end

BMW said that despite the continuing adverse economic climate, it had recorded positive earnings for the third quarter of the year. "The measures we have put in place to increase efficiency and reduce costs are taking effect," said chairman Norbert Reithofer in Munich today (3 November). As a result, earnings for the full year 2009 were likely to be positive provided that the global economy and conditions in the car markets did not worsen again. Third-quarter revenues decreased to €11.8 billion (£10.6bn) from €12.6bn for the same period last year. Pre-tax profits came in at €126 million (third quarter 2008: €279 million). Revenues for the nine-month period decreased to €36.2 billion (first nine months 2008: €40.4 billion) and the pre-tax profit to €79 million (first nine months 2008: euro 1.5bn). BMW said that during the period from July to September, the automobile industry was again confronted with reduced consumer spending and with intense market competition amid unfavourable business conditions and the Group was unable to avoid the effects of these developments. The company said it continued to benefit from having reacted quickly to the global financial and economic crisis by putting a wide range of measures into place at an early stage. The BMW workforce comprised 98,358 employees worldwide at the end of the third quarter (September 30, 2008: 103,850 employees). This corresponds to a reduction of 5.3%. A sales volume decrease of 10% to 15% is expected for the full year, reflecting expected increases for the remaining months of 2009. This, the company says, will be enhanced by the new BMW X1 (pictured) and 5 Series GT models. Looking to 2010, Reithofer said: "We expect that the markets will make a gradual recovery over the coming year."