FRANKFURT—BMW AG increased its dividend for 2010 following a strong rise in sales and earnings, the latest sign that luxury-car makers staged a speedy recovery last year after a woeful 2009.
BMW raised its dividends by €1 to €1.30 per common and €1.32 per preferred share and reported a surge in net profit to €3.23 billion ($4.5 billion) from €210 million in 2009 as revenue rose 19% to €60.48 billion from €50.68 billion. At 8%, the company also surpassed its own earnings before interest and tax margin target of 7% for the auto segment. For 2012, BMW is aiming for an Ebit margin of 8% to 10% in the auto segment.
"We have set new records for revenues and group earnings and have more than achieved our target for the full year," the world's best-selling premium auto maker said in a statement.
The company and its peers are gearing up for a strong first quarter and anticipate record sales in 2011 after demand for their cars in recent months continued to surge. In the coming months, BMW expects sales to continue to improve, supported by its model range.
"We are targeting record sales of more than 1.5 million vehicles in 2011 and expect to achieve new highs for all three of our brands," Chief Executive Norbert Reithofer said.
In 2010, BMW sold 1.46 million cars, with growth in almost all markets. Sales in the U.S. rose 10%, while they soared 85% in China. BMW also notched up double-digit sales growth in Russia, Brazil, South Korea and India.
On Wednesday, BMW said February global sales leaped 22% year-to-year, with sales of the core BMW brand up 22%. BMW previously has said it expects the pace of sales growth to slow in the second half of the year, partly due to tougher comparisons as demand picked up in the course of last year. The company hosts its annual press conference next Tuesday, where it may say more about its outlook.
A year ago, demand for luxury cars was still muted by the industry downturn, but the segment staged a faster-than-expected comeback in the course of 2010, driven by a growing number of affluent Chinese customers and a market recovery in the U.S.
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