BMW 2009 Profit Falls 36 Pct to $286 Million

FILE - The May 14, 2009 file photo shows raindrops on the BMW sign of a BMW car prior a general...

FILE - The May 14, 2009 file photo shows raindrops on the BMW sign of a BMW car prior a general meeting of the BMW Group in Munich, southern Germany. German carmaker BMW AG said Thursday, March 11, 2010 its 2009 net income fell 36 percent to euro 210 million (US$286 million) because of lower demand for its cars during the economic downturn as well as a higher tax rate. (AP Photo/Matthias Schrader)

(AP)

German carmaker BMW AG said Thursday its 2009 net income fell 36 percent to euro210 million ($286 million) because of lower demand for its cars and motorcycles during the economic downturn as well as a higher tax rate.

BMW, the world's biggest luxury car maker, said it earned euro330 million in net income in 2008. Revenue last year was down nearly 5 percent to euro51 billion from euro53 billion in 2008.

The automaker, based in Munich, also builds motorcycles and the Mini and Rolls Royce car brands.

It did not release fourth quarter figures but is scheduled to report full results March 17.

Production for the year decreased nearly 13 percent to 1.26 million cars from 1.44 million in 2008, the company said. The BMW brand saw a 13 percent decline, Mini a 9 percent decline and Rolls Royce a 35 percent decline. The motorcycle division reported a 21 percent drop in production to nearly 83,000 bikes.

Despite the setbacks caused by the economic downturn, BMW said it was cautiously optimistic for the current year. It said it expected to grow profitably due to new models and a gradual global economic recovery, but didn't give a specific forecast for earnings.

"Our new models will provide us with a tailwind over the course of the year," Norbert Reithofer, the company's chief executive, said in the report.

"We fully intend to remain the world's leading provider of premium cars in 2010 and plan to increase sales within the single digit percentage range to over 1.3 million vehicles" he said.

Shares of BMW were about three quarters of a percent higher at euro32.50 in Frankfurt afternoon trading.

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