Berlin: Bayerische Motoren Werke AG reported a full- year profit that beat analysts' estimates and announced a bigger-than-expected dividend, sending the shares as much as 3.1 per cent higher.
Net income was 210 million euros (Dh1 billion), or 31 cents a share, compared with 330 million euros, or 49 cents, a year earlier, the Munich-based company said yesterday in a statement. BMW kept its dividend unchanged at 30 cents a share, surpassing analysts' estimate of a 25 cent payout.
"We are proposing a dividend for 2009 despite the difficult economic climate, demonstrating the confidence we have in our operating strength," Chief Executive Officer Norbert Reithofer said in the statement. Global auto markets are likely to grow 2 per cent to 53.3 million vehicles in 2010, as a rebound in North America offsets a drop in western Europe, according to researcher IHS Global Insight.
BMW reported a drop in sales in its two largest markets last year, with deliveries tumbling by 9.4 per cent in Germany to 258,000 cars and sport-utility vehicles and by 20 per cent in the US to 241,700 vehicles.
The luxury car maker said its new models, such as the 5-Series sedan and Mini Countryman crossover, should provide a "tailwind" to sales this year. BMW anticipates sales rising by a "single-digit" percentage range this year to more than 1.3 million cars and SUVs.
BMW shares rose as much as 99 cents to 33.26 euros and traded at 32.82 euros as of 11.24am in Frankfurt, giving the carmaker a market value of 21.2 billion euros. Revenue declined 4.7 per cent 50.7 billion euros last year. The company had been expected to report net income of 167 million euros, according to the average estimate by 12 analysts compiled by Bloomberg.
