Bmw on road to recovery, predicts modest rise in car sales
By Andrew C., 26 Aug, 2010. 0 Comments
2010 Bmw M3 Sedan
BMW AG predicts that in 2010, it will have a modest rise in car sales. It also expects a 2009 pretax profit despite the global economic crisis. Some analysts say that the sales figures for 2009 are indeed welcome and they're optimistic about BMW's targets; however, others contend that there will still be pressure on BMW's profit margins and outlook as the car sector remains at risk due to the ongoing economic crisis. Equinet analyst Tim Schuldt said that revenues have been positive and he is keeping a "buy" rating on the stock. BMW disclosed that its 2009 sales came in at 50.68 billion euros ($71.15 billion), exceeding the DZ Bank estimate of 48.35 billion euros. Citigroup analysts also want to keep a "buy" rating on BMW because they think that the launch of the new 5-series medium-premium sedan in 2010 could add positive momentum to the current consensus for revenue growth of 5%.
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