BMW second quarter profits almost doubled

BMW AG, the German luxury automotive maker, reports that its second-quarter profit more than doubled. The company attributes the jump in profits to increased demand for luxury vehicles particularly in markets like China. The company earned €1.8 billion (US$2.43 billion) up from €831 billion (US$1.12 billion) in 2010 for the same quarter. Revenue increased to €17.89 billion (US$24.1 billion). The company has set a sales goal of 1.6 million cars for 2011. “The first half of 2011 has been the best six-month period in the BMW group’s history,” said Norbert Reithofer, CEO for BMW. Demand for luxury cars like BMW’s seven series in China is reaching record sales. “BMW’s magnificent second-quarter result exceeded already heightened street expectations,” said Max Warburton, an analyst with Sanford Bernstein. “BMW profitability is stunning. We think that only Porsche and Ferrari can claim to have ever met or exceeded this level of profitability in the global auto industry,” he added. (August 3, 2011)