BMW sales targets

BMW, the world's largest premium carmaker, expects record sales for all three group brands this year, it said yesterday after posting 14.3 per cent higher revenue last year to a record €56.02 billion.

"We expect a new record sales volume figure this year, with stronger growth in the first half of the year and more moderate gorwth in the second," chief executive officer Norbert Reithofer said in a statement.

He emphasised that sales growth and profitability are "both of paramount importance" to the group's future - a signal to investors concerned that the group is not doing enough to stem the chronic slide in its margins.

Mr Reithofer reaffirmed the full-year 2007 earnings target for higher pre-tax profit excluding an exceptional gain from the settlement on a Rolls-Royce plc convertible bond booked in 2006.

Turnover at BMW's core Automobiles segment rose faster than vehicle sales last year, increasing by 12.7 per cent to 53.82 billion - a gross figure however that includes revenue booked twice within different parts of the group and later eliminated.

Financial Services posted 25.8 per cent higher sales at €13.94 billion.

Capital expenditure for property, plant and equipment as well as other intangible assets rose by 5.7 per cent to 2.93 billion as BMW expanded its production network.

Earlier this month, the company said unit sales rose 9.2 per cent last year to 1.50 million vehicles.