Germany's BMW posted its first quarterly profit rise of the year today amid demand for its new 5-series model and said an expected recovery in the second half was emerging.
The car maker, which saw its profits fall sharply in the first two quarters as development costs for a number of new models took their toll, said it was on track to match last year's earnings in 2003.
BMW posted pre-tax earnings of €724 million for the third quarter, a rise of 5 per cent and in line with market forecasts.
BMW has tripled the number of model ranges it offers since the early 1990s, increasing product costs more quickly than revenues and squeezing margins in the last three quarters, but it is now nearing the end of its biggest ever new product programme.
Return on sales at its autos unit - a closely watched indicator of margins in its core business - came in at 6.3 per cent in the period, up from 5.7 per cent a year ago.
With the recent unveiling of its revised 5-series saloon, a new X3 compact sports utility and 6-series coupe, industry watchers had expected an improvement in the second half. The company will unveil a convertible version of the 6-series at the Detroit show in January and a drop-top variant of its iconic Mini hatchback.