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BMW says weak dollar dents 2003 sales
Frankfurt, Jan 27: Luxury carmaker BMW posted a slip in 2003 revenues on Tuesday as the weak dollar took its toll on revenues, but the fall was less than some had expected and the German firm stuck to its profit goal.
Frankfurt, Jan 27: Luxury carmaker BMW posted a slip in 2003 revenues on Tuesday as the weak dollar took its toll on revenues, but the fall was less than some had expected and the German firm stuck to its profit goal.
"Current year earnings will match those for the previous year at a group level," BMW Chief Executive Helmut Panke said in a letter to shareholders, referring to 2003.
BMW said that its revenues fell 2.1 percent last year to 41.525 billion euros ($52.26 million) but said that once adjusted for the impact of currency fluctuations sales rose more than four percent versus the year before.
The sales figure was also slightly more than the average forecast of analysts who according to Reuters Research had expected a sales number of 41.15 billion euros.
"The numbers are within our range of expectations," said Michael Punzet, analyst at Landesbank Rheinland-Pfalz. "It's significant that BMW confirmed its outlook and BMW shares should profit from that today."
Munich-based BMW repeated that it expected 2003 pretax profits to match 2002's level of 3.3 billion euros and reiterated that it again expects higher unit sales in 2004.
"During a phase of significant expenditure for the Group's product and market offensive, this is clear evidence of the underlying strength of the BMW Group," Panke said.
The group, which saw profits hit in the first half of 2003 by development costs for new models including the X3 compact sports utility vehicle and the 6-series coupe, said capital expenditure last year rose 5.2 percent to 4.25 billion euros.
BMW last week notched up its 2002 sales figure by 129 million euros to 42.41 billion as it changed internal accounting methods to include fees from credit-card handling. Bureau Report
BMW said that its revenues fell 2.1 percent last year to 41.525 billion euros ($52.26 million) but said that once adjusted for the impact of currency fluctuations sales rose more than four percent versus the year before.
The sales figure was also slightly more than the average forecast of analysts who according to Reuters Research had expected a sales number of 41.15 billion euros.
"The numbers are within our range of expectations," said Michael Punzet, analyst at Landesbank Rheinland-Pfalz. "It's significant that BMW confirmed its outlook and BMW shares should profit from that today."
Munich-based BMW repeated that it expected 2003 pretax profits to match 2002's level of 3.3 billion euros and reiterated that it again expects higher unit sales in 2004.
"During a phase of significant expenditure for the Group's product and market offensive, this is clear evidence of the underlying strength of the BMW Group," Panke said.
The group, which saw profits hit in the first half of 2003 by development costs for new models including the X3 compact sports utility vehicle and the 6-series coupe, said capital expenditure last year rose 5.2 percent to 4.25 billion euros.
BMW last week notched up its 2002 sales figure by 129 million euros to 42.41 billion as it changed internal accounting methods to include fees from credit-card handling. Bureau Report