MUNICH (Bloomberg) -- BMW AG aims to raise profit in 2011 after record results last year as it revamps the X3 and 6-series models and adds production in China and India.
The maker of BMW, Mini, and Rolls-Royce cars and sport-utility vehicles anticipates that 2011 earnings before interest and taxes at its auto division will beat last year's margin of 8 percent of sales, BMW said today at a press conference in Munich.
There's a "good chance" that automotive Ebit margins will continue in the target range of 8 percent to 10 percent beyond 2012, CEO Norbert Reithofer said.
BMW will assemble the X3 SUV at its plant in Chennai, India, starting in the second quarter, while a new factory in China, will produce the X1 compact SUV starting next year. Further production sites, including new facilities in South America, are being considered as BMW strains to keep up with orders.
"Handling the level of demand has been a tour de force for our international production network," Reithofer said. "At the end of the year, we had about 100,000 units more on the books than originally planned."
Analysts expect BMW to record a 13 percent increase in net income to 3.64 billion euros in 2011, according to the average of 13 estimates compiled by Bloomberg. Boosted by the overhauled X3 and 6-Series coupe as well as the new Mini Countryman, the carmaker is targeting record deliveries of more than 1.5 million vehicles this year and all-time highs for each brand.