GERMANY: BMW optimistic about first quarter earnings but analysts unimpressed
BMW said on Wednesday it was optimistic about first-quarter earnings and expected recent model launches to fuel record 2004 profits, but its shares failed to react as investors had hoped for more.
After two years of investing heavily in hotly anticipated new products like the redesigned 5-series, the Munich-based luxury carmaker said it expected to reap the rewards in 2004, Reuters reported.
"We will begin to harvest the fruits of our product and market offensive this year," chief executive Helmut Panke reportedly said, after predicting that pre-tax profits should exceed the record €3.3 billion ($US4.07 billion) posted in 2002.
Despite a weak start to the year for the car industry as a whole, Panke said BMW would enjoy the best March ever in terms of vehicle sales and told Reuters that he was "quite optimistic" for first-quarter earnings.
The news agency noted that BMW’s continued optimism comes in stark contrast to many of its competitors, who are suffering from the strong euro and slack consumer demand. Volkswagen last week said that a "lousy" first quarter would mean topping its 2003 operating profit of €2.5 billion before one-offs would be an ambitious goal.
Source: just-auto.com editorial team
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