RSS Feeds

BMW profits rise in 'most successful year' ever

Thursday - 3/14/2013, 2:30pm  ET

FRANKFURT, Germany (AP) -- German automaker BMW says net profit increased 4.4 percent to EUR5.1 billion ($6.6 billion) in 2012 -- hailing it as its "most successful year" -- thanks to a big sales jump in Asia and a better market in the United States.

The company, based in Munich, said Thursday that unit sales rose 31 percent in Asia, including a 40 percent rise in China excluding Hong Kong, and 14 percent in in the U.S. Sales of the 1-series compact increased 28 percent while the mainstay 3-series sedan saw a 6 percent rise.

Overall revenues rose 12 percent to EUR76.8 billion. The company said profits rose less steeply than revenues because of investments in new technologies and increased personnel costs.

Still, CEO Norbert Reithofer called it "the most successful year in BMW Group corporate history." The company's workforce grew by 6 percent last year to 105,876 and the company said it was still looking for engineers and other skilled workers to keep pace with sales demand and technological change.

Fourth-quarter earnings jumped 37 percent to EUR1.2 billion on sales that rose 12 percent to EUR20.5 billion.

Reithofer gave a cautious outlook, saying sales would increase but that "economic conditions are likely to remain challenging in many markets."

BWM AG shares traded down 0.4 percent at EUR70.98.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.