BMW shares surge despite fall

BMW fell into loss early this year amid weak demand for luxury cars, but the results yesterday were a welcome surprise for analysts and the shares surged. BMW made a first-quarter net loss of €152 million, a statement said, compared with a profit of...

BMW fell into loss early this year amid weak demand for luxury cars, but the results yesterday were a welcome surprise for analysts and the shares surged. BMW made a first-quarter net loss of €152 million, a statement said, compared with a profit of €487 million in the same period of 2008.

The group declined to give an outlook for 2009, citing "the unprecendented magnitude of the economic downturn", but said markets were "bracing themselves" for decreases of at least 10 per cent. Core earnings swung to a loss of €55 million from a profit of €827 million, as sales slumped by 13 per cent to €11.5 billion from €13.3 billion, the statement said.

Shares in the company leapt by 4.11 per cent to €28.62 in morning trading on the Frankfurt stock exchange.

A total of 277,264 automobiles were sold in the first three months of the year, down from 351,787 in the first quarter of 2008. The group also owns Mini and Rolls-Royce.

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