Obbligazioni societarie Monitor bond case automobilistiche e accessorio auto

[Imark]

Anche sull'EuroTLX 92.3 - 92.4. sarà stato per questa notizia?

ILSOLE24ORE.COM

Valeo torna all'utile nel terzo trimestre

Dopo tre trimestri consecutivi di perdite Valeo, colosso francese della componentistica auto, è uscito nel terzo trimestre 2009 dal rosso con un utile di 4 milioni. Il gruppo, che nel terzo trimestre ha realizzato un fatturato di 1,9 miliardi in calo dell'8% rispetto all'anno prima, punta ora a chiudere il secondo semestre con un profitto netto «vicino all'equilibrio».

Forse anche per il rendimento, relativamente attraente su un bond di quella lunghezza ... ma qui a fare la differenza sarà il concretarsi o meno dell'ipotesi di accrescimento del debito per fare acquisizioni (una cosa che dovrebbero assolutamente evitare, IMHO)...

 

[Imark]

Lasciamo qui, è indicativo della situazione corrente... anche per Valeo molto hanno fatto i tagli, concorrendo ad elevare leggermente il margine operativo espresso in % (che resta tuttavia molto basso). Dimezzato il consumo di cassa previsto per l'anno, e questa è una buona notizia.

Per fortuna, pare che non abbiano menzionato acquisizioni, anzi, intenderebbero comprimere il capex ai livelli attuali per gli anni a venire.

Se emettessero un nuovo bond, possibilmente sul medio termine, sarebbe meglio.

• OCTOBER 20, 2009, 2:18 P.M. ET

2nd UPDATE: Valeo 3Q Net Pft EUR4M; Ups Output Forecast

(Adds details on operating margins, CEO comments from conference call on global output, capital expenditures and cost cutting)

By David Pearson

Of DOW JONES NEWSWIRES
PARIS (Dow Jones)--French automotive supplier Valeo SA (FR.FR) said Tuesday that it managed to post a small net profit of EUR4 million in the third quarter, ending three straight quarters of losses, thanks to a recovery in production at its automobile manufacturing customers.

The company said it expects a continued recovery of automobile output in the fourth quarter, and is revising upward its production objectives for the second half of the year, without being more precise.

"Overall global automotive output in the second half should be slightly higher than that of the second half 2008, thanks in particular to the sustained effect of scrapping programs through the end of the year and to the vitality of the main emerging markets," Valeo said.

At the end of July, Valeo forecast a 7% decline in global automotive production for the second half and a 17% drop for the full year. Chief Executive Jacques Aschenbroich told analysts in a conference call that the company now expects a 15% decline in global output in 2009.

"Continuing on from the third quarter, the group's operating margin will benefit from the impact of the cost reduction program while taking into account the rebound in production," it added.

"In the current market conditions, the group has set as its objective to achieve a net income close to the break-even point in the second half," it said.

Valeo's third-quarter net profit was in line with the EUR6 million net profit posted in the same period of 2008, and came in above analyst expectations of a EUR12 million net loss.

Third-quarter sales fell 8% to EUR1.91 billion, while operating profit rose by 5% to EUR68 million. Operating margin for the three months came in at 3.6% of sales, up from 0.8% in the second quarter and the highest level for a third quarter since 2005.

Valeo said it now expects to consume less than EUR100 million in cash this year, and will keep investments "significantly lower" than amortization in an effort to improve its cash-flow generation.

Aschenbroich predicted that Valeo's capital expenditure will remain at around the present level of 78% of depreciation in the coming years. The cash-flow picture for 2009 is better than than the company's prediction three months ago of a cash burn of around EUR200 million.

Aschenbroich said Valeo is on track to achieve its target of trimming costs by EUR500 million in 2009 and EUR600 million in a full year as from next year. The company, France's largest listed automotive supplier, slashed its workforce by 3,700 over the first nine months.

Valeo also announced that France's state-controlled Strategic Investment Fund, which owns 8.3% of Valeo's capital, has agreed not to increase its stake in Valeo's capital or voting rights to more than 15% without prior approval of the Valeo board.

Valeo had intended to release its third-quarter results after the market close, but the figures were released inadvertently half an hour before the end of trading. Its shares were trading at around EUR21.10 shortly before the release, but surged to nearly EUR21.70 thereafter, closing at EUR21.65, up 3.7% on the day.

It was the second piece of good news for French auto makers in less than 12 hours. Earlier Tuesday, Valeo rival Faurecia, a 71%-owned unit of PSA Peugeot-Citroen (UG.FR), raised its earnings guidance slightly for the second half due to cost cutting and said sales are set to fall less than initially forecast.

 

[Imark]

Fiat...

(Adds 2010 forecast, analyst's comment, share price.)

• OCTOBER 21, 2009, 1:06 P.M. ET

2nd UPDATE:Fiat 3Q Trading Pft Down 62%, Write-Offs Seen


By Gilles Castonguay
Of DOW JONES NEWSWIRES

MILAN (Dow Jones)--Italian auto maker Fiat SpA (F.MI) Wednesday posted a 62% drop in quarterly trading profit as the recession hit its sales hard, and it spoke of possible write-downs due to its partnership with Chrysler Group LLC.

The warning is one of the first signs that its holding in the U.S. car maker, brokered by the U.S. government earlier this year, could weigh on its earnings even though Fiat had vowed it would not cost it any money.

"This is a sign that it might have an impact on its P&L," one London analyst said on condition of anonymity. In June, Fiat took a 20% stake and full management control of Chrysler.

Fiat said it was reviewing the carrying value of some investments in platforms and architectures, especially in its cars, as it aligned its business with that of the U.S. company.

"The group may revisit the future viability of some of its past investments, necessitating the write-off, as unusual items, of these legacy investments," it said. "They will not have a cash impact."

Fiat Chief Executive Sergio Marchionne declined to elaborate on a conference call with analysts ahead of the Nov. 4 presentation of his plan to revive Chrysler.

UBS analyst Philippe Houchois said it likely meant ditching old platforms at the cost of hundreds of millions of euros.

For the third quarter, Fiat's net profit tumbled 95% to EUR25 million, as revenue fell 16% to EUR12 billion.

Its closely-watched trading profit - operating profit excluding exceptional items - totaled EUR308 million, ahead of analysts' expectations of EUR260 million, according to a Fiat poll.

"Aggressive cost containment actions helped mitigate the effect of revenue declines and pushed trading margins up to 2.6% (against 2.4% in the second quarter)," Fiat said in a statement.

Like other car makers, the Turin-based maker of Fiat, Alfa Romeo and Lancia cars has suspended some production at its factories, cut costs and reduced cash burn in the face of the downturn.

Fiat confirmed its 2009 targets, including a group trading profit exceeding EUR1 billion and a net industrial debt of less than EUR5 billion.

Marchionne told analysts he expected Fiat to produce a trading profit of EUR1.5 billion in 2010 on a 2%-3% rise in sales as long as the government in its home market of Italy extended its scrapping scheme in some form beyond the Dec. 31 deadline.

Fiat and other manufacturers have had a fillip over the summer and autumn with demand for their cars being bolstered by government schemes across Europe to encourage the scrapping of old cars and the purchase of new, less polluting ones.

Industry experts fear demand will fall once more when the scrapping schemes end.

As for its Iveco truck and CNH (CNH) agriculture and construction equipment units, Fiat said it expected them to keep facing depressed demand for the whole year.

Fiat shares ended 2.05% down at EUR11 in Milan, following the whole European auto sector lower following the publication of lower sales figures by France's PSA Peugeot-Citroen (UG.FR) earlier Wednesday.

One Milan analyst cited profit-taking after a surge in Fiat's stock ahead of its results as well as speculation on the extent of the write-offs

 

[Imark]

Più completo quest'altro report...

Automaker Fiat sees 3Q earns down 95 percent

By COLLEEN BARRY (AP) – 25 minutes ago

MILAN — Fiat CEO Sergio Marchionne declared "the worst has passed" Wednesday after the Italian automaker reported an unexpected, small third-quarter profit on Wednesday.

Fiat Group SpA's net profit still plunged 95 percent from the same period a year earlier. But analysts say the numbers indicated a level of resilience even as management shuttled back and forth across the Atlantic to manage the turnaround of Chrysler LLC.

Fiatreturned to profitability after two straight quarters of losses, attributed to the severe impact of the world economic crisis on auto sales worldwide.
Net profit was euro21 million ($31.44 million), down 95 percent from euro440 million in the same quarter a year earlier. Revenues fell 15 percent to euro12 billion compared with euro14.3 billion in the same period last year.

Turin-based Fiat took a controlling 20-percent in the U.S. automaker after it emerged from bankruptcy in June and Marchionne is set to announce Chrysler's five-year business plan on Nov. 4.

The bottom line was helped by the cash-for-clunkers programs in Europe, which has favored the small cars and fuel-efficient engines in Fiat's lineup, and by strong volumes in Brazil. Two-thirds of Fiat's operating profit came from autos, Marchionne told a conference call, with car volumes up some 10 percent year on year.

"I think it is fair to say the worst has passed," CEO Sergio Marchionne told an analyst conference call. "It is unclear when we will see substantial signs of recovery in 2010."

Much will depend, Marchionne said, on whether European governments will continue the eco-incentive programs as far as the car business goes. Germany has already ended its, but Italy appears ready to continue its incentives.

Fiat maintained its forecast of trading profits, or operating earnings before one-time pluses and minuses, above euro1 billion and debt levels below euro5 billion.

Shares closed down 2 percent at euro11 on the Milan Stock Exchange.
The earnings release was marked by an unusual revision, as the company initially reported a net loss of euro168 million. About 90 minutes later, it corrected the relevant page of its release and changed that number to a small profit. Fiat dismissed the error as trivial, and it was not raised by analysts during the conference call.

Many analysts and investors focused on the trading profit number, which was not changed.

The recession continued to weigh on CNH, Fiat's farm and construction business, with revenues down 27 percent to euro2.3 billion "due to persistent significant declines in the global construction equipment industry. CNH posted a trading profit of euro66 million, down 77 percent from a year earlier.

The Iveco truck business reported a 29 percent decrease in revenues to euro1.7 billion due to general market weakness that saw deliveries plunge 35 percent. Iveco posted a trading profit of euro22 million, albeit down 88 percent from a year earlier, due to reduced production and tough cost-cutting, Fiat said.

"They surprised us slightly in both trucks and CNH today, positively" Morgan Stanley analyst Adam Jonas said. While the Iveco truck business is suffering, Jonas noted "it is doing better than their competitors, and no worse than we expected. It is still a very difficult environment for some of the later-cycle businesses like trucks."

Bernstein analyst Max Warburton called the results "solid," beating consensus forecasts, and he said there was no signs that Fiat's management had been overstretched by the job at Chrysler.

"Managing Fiat Auto, CNH, Iveco and the group's capital structure while also trying to turn around Chrylser looks extraordinarily complex — but so far the trans-Atlantic shuttles and reported use of multiple telephones and Blackberries seems to be functioning," Warburton wrote in a note.

Revenues for Fiat's auto business were down 1.4 percent to euro6.4 billion, despite a 10 percent increase in the number of cars sold thanks to government cash-for-clunker schemes that favored their small cars and fuel-efficient engine technology.

Fiat Group Automobile, which sells cars under the Fiat, Lancia and Alfa Rome brands, increased its market share in Western Europe by 0.4 percentage point to 8.3 percent and outpaced the Brazilian market, which rose 7.8 percent, to take a nearly one-quarter market share.

 

[Imark]

Volvo, i cui bond offrono un rendimento sorprendentemente basso (IMHO) posta la quarta perdita trimestrale e conferma il proprio forecast di un calo di almeno il 50% per i veicoli industriali "pesanti" in Europa per il 2009 rispetto al 2008 e fra il 30% ed il 40% per gli USA. Segnala tuttavia che la caduta della domanda sembrerebbe essersi arrestata, soprattutto in Asia.

Nel compelsso, il fatturato è sceso del 30% nel Q3/2009 y-o-y e del 34% quello della divisione dei veicoli industriali, la principale area business di Volvo.

Truck maker Volvo posts 3Q loss as sales fall

By LOUISE NORDSTROM (AP) – 38 minutes ago

STOCKHOLM — Swedish truck maker AB Volvo on Friday reported a third-quarter net loss of 2.9 billion kronor ($423 million), due to a steep drop in sales in Europe and the U.S., but said demand was stabilizing, particularly in Asia.

It was the fourth consecutive quarterly loss for the company and compares with a previous profit of almost 2 billion in the same three months a year ago.

Revenue in the period plunged more than 30 percent to 48.5 billion kronor from 69.8 billion kronor in the third quarter in 2008.

The biggest drops were recorded in its truck and construction equipment units. Revenue for the truck division, Volvo's largest business area, fell 34 percent in the quarter, mainly because of weaker demand on the European market.

Volvo kept its 2009 heavy-duty truck forecast for that market unchanged, saying it expects it to "be at least halved" from last year.

For North America, where sales also fell steeply, it said it expects the market for heavy-duty trucks to drop between 30 and 40 percent this year from 2008 levels.

Volvo CEO Leif Johansson said that although markets seem to have stabilized, his company "is not relying on our profitability being boosted by a substantial recovery in sales of new products," saying it is still "far below" the long-term trend for sales of new trucks and machines. The company will therefore continue to keep sharp control of costs, he said.
Nonetheless, he said there are signs, particularly in Asia, indicating that fall in demand "has bottomed out" and that the group is on its way toward a gradual recovery.

Sydbank analyst Morten Imsgard said that overall, the report was somewhat stronger that expected. The positives, he said, had little to do with the numbers reported, but rather on the statements made on the future, with indications that the downward demand trend could be turning around. "It's a bit better than what we've heard them say before," he said.
The Volvo share gained 3 percent to 68.50 kronor ($9.98) in early morning trading.

Volvo, headquartered in Goteborg, also makes buses, engines and construction equipment. It sold its car division to U.S.-based Ford Motor Co. in 1999, which now has announced that the car unit is for sale.

 

[Imark]

Moody's rivede a stabile l'outlook globale per il comparto automobilistico.

Lo fa con estrema circospezione e precisando che la stabilizzazione significa che il comparto (valutato a livello globale) non dovrebbe vedere nei prossimi 18 mesi nè peggioramenti nè miglioramenti rispetto ai livelli attuali, segnando nel 2010 un 2% di crescita delle vendite su scala globale rispetto a quanto totalizzato nel 2009, per il quale il forecast di Moody's è per un - 8% su scala globale rispetto all'anno precedente.

Se poi si passa a valutare il comparto per macroaree geografiche, il quadro si differenzia maggiormente.

Per l'Europa occidentale Moody's prevede un ulteriore indebolimento delle vendite nel 2010 rispetto al 2009, per effetto del venire meno degli incentivi in alcuni paesi (in primi, la Germania).

Negli USA invece la previsione è per un modesto recupero rispetto ai livelli di vendita attuali, con 11,5 mln di auto vendute nel 2010.

La situazione resterà complessivamente precaria per i produttori globali, variante anche in funzione delle aree di mercato a più forte presenza (svantaggiati quelli con focus prevalente in Europa occidentale), sebbene le misure adottate in termini di contenimento dei costi a partire dagli inizi del 2009 e gradualmente attuate o in corso di attuazione dovrebbero consentire miglioramenti della performance operativa.

Una serie di fattori potrebbe ancora incidere negativamente su questo scenario: dagli elevati livelli di disoccupazione ai bassi livelli di utilizzo degli impianti e alla pressione che la situazione macroeconomica esercita sui prezzi, dai costi in risalita al seguito di una ripresa dei prezzi delle materie prime agli investimenti resi necessari dalle normativa antinquinamento, fino al trend di sostituzione delle autovetture con altre più piccole e meno inquinanti, ma anche meno profittevoli per i produttori.

Moody's revises Global Automotive Manufacturers' Industry Outlook to stable

Frankfurt, October 19, 2009 -- Moody's Investors Service today changed its Industry Sector Outlook for the Global Automotive Manufacturers sector to stable from negative. The outlook expresses Moody's expectations for the fundamental credit conditions in the industry for the next 12 to 18 months.

This change in outlook reflects Moody's view that the drastic reduction in global light vehicle production experienced over the last 12 months has begun to moderate and that very modest growth trends may take hold. This should contribute to a firming of business fundamentals for the global automotive manufacturers. A stable outlook indicates that Moody's does not expect business conditions for the automotive manufacturers to materially improve or worsen.

Moody's notes that this industry outlook change does not affect individual manufacturers' rating outlooks, which will continue to reflect their fundamentals and financial profiles.

The rating agency anticipates 2% growth in global light vehicle unit sales in 2010 based on stabilizing global demand and a favorable comparison to weak sales in 2009. Approximately 40.4 million light vehicles were sold worldwide in the first eight months of 2009, down 11.3% from the same period the year before. For the full year 2009, Moody's base scenario forecasts a decline of 8% from 2008 global sales of about 64.6 million vehicles.

"However, there is a material difference in regional market developments," said Moody's Senior Vice President Falk Frey. "Demand in Western Europe will be weaker next year, driven by the pull-forward of demand resulting from scrapping bonuses in the key European markets that supported sales volumes in the current year. We expect new registrations of light vehicles to be down in 2010 as these incentives either end or are prolonged on less favorable terms. This particularly could affect Germany, where passenger car registrations were up 27% year to date through August.

"Nonetheless, all rated manufacturers will benefit from initiatives they have implemented in the current year to adapt inventory levels and cost structures to the lower levels of demand. In the absence of further restructuring expenses, Moody's anticipates an improving trend in operating performance, although from exceptionally weak or negative levels in the current year," Frey added.

In the North American market, calendar year 2010 vehicle sales are expected to rebound slightly from the very depressed levels seen in 2009, but will still remain well below previous peak levels. "We would expect to see vehicle sales climb to about 11.5 million units in the U.S.," said Bruce Clark, Moody's U.S. auto analyst. Even with the significant restructurings implemented by automakers, this level of sales will still be insufficient to restore profitability. But the significant downside pressures that have plagued the U.S. auto industry over the last several years appear to have abated.

Despite the signs of stabilization, multiple constraints exist that will likely hinder the return of more meaningful near-term growth and the light-vehicle demand levels experienced in 2007 and 2008, Moody's said. Also, some downside risks remain given the uncertainty of economic recovery as well as rising unemployment rates in major car markets.

Thus, while Moody's believes fundamentals for carmakers are firming -- especially those with strong presence outside Western Europe -- the agency does not expect the improvement to be exceptionally robust. Underpinning this view is the industry's low capacity utilization, pressure on prices, rising costs and expenses for meeting emission legislation requirements and a long-term trend towards smaller cars with lower emissions but also generally lower profitability for the manufacturer.

 

[Imark]

Honda triplica il forecast sugli utili di fine anno fiscale (quello nipponico si chiuderà a marzo 2010), nonostante la grande forza dello yen.

Paga il focus su produzioni appetite sui mercati (motocicli, auto a piccola e media cilindrata nonchè ad elevata efficienza per quanto riguarda i consumi); per talune produzioni, quali appunto i motocicli o le autovetture negli USA, la scelta di assemblare sui mercati di destinazione, sostenendo i costi di manodopera nelle valute di vendita dei prodotti.

Le vendite, misurate in JPY, risultano in calo nel trimestre del 27% y-o-y, l'utile netto del 56%.

• OCTOBER 27, 2009, 7:38 A.M. ET

Honda Motor July-September Net Profit Y54B Vs Y123.3B Profit

TOKYO (Dow Jones)--Honda Motor Co. (7267.TO) said Tuesday its net profit sank 56% in the fiscal second quarter, as the yen's strength and slack auto demand more than offset cost-cutting efforts and solid sales of fuel-efficient vehicles.

But Japan's second biggest car maker by sales volume sharply upgraded its full year profit outlook in a sign that the auto maker's efforts to cut down costs among other steps are paying off.

For the just-ended quarter, Honda posted a net profit of Y54.04 billion in the three months ended Sept. 30, down from Y123.32 billion a year earlier.

The result was stronger than a mean analyst estimate of a Y43.9 billion net profit compiled by Thomson Reuters based on 16 analysts' estimates.

Honda's operating profit in the period dropped 56% to Y65.54 billion from Y148.85 billion in the previous year. Sales tumbled 27% to Y2.057 trillion from Y2.827 trillion.

Honda--also the world's largest motorcycle maker by sales volume--is the first Japanese car maker to report earnings for the fiscal second quarter.

Analysts expect Toyota Motor Corp. and Nissan Motor Co. to follow suit in reporting downbeat earnings when they release their results next week.

For the full fiscal year ending March 2010, Honda now expects a net profit of Y155 billion, better than a profit of Y55 billion previously foreseen. It also raised full year sales outlook to Y8.450 billion from Y8.280 trillion.

Honda reports earnings under U.S. accounting standards.

 

[woolloomooloo]

For the just-ended quarter, Honda posted a net profit of Y54.04 billion in the three months ended Sept. 30, down from Y123.32 billion a year earlier.

The result was stronger than a mean analyst estimate of a Y43.9 billion net profit compiled by Thomson Reuters based on 16 analysts' estimates.

non riesco a spiegarmi come la media delle stime di 16 analisti faccia una differenza di 11 billion di JPY, che su 54 fa uno 'sforamento' del 20%.
io di bilanci capisco niente e allora provo a fare 2+2, semplificando al massimo... 11 billion di JPY fa , se ho contato giusto, quasi 80 milioni di EUR che fa 'quasi metà' di una stagione di formula 1.. non è che questi analisti si son dimenticati che Honda non avrebbe corso in formula 1 quest'anno?

 

[Imark]

non riesco a spiegarmi come la media delle stime di 16 analisti faccia una differenza di 11 billion di JPY, che su 54 fa uno 'sforamento' del 20%.
io di bilanci capisco niente e allora provo a fare 2+2, semplificando al massimo... 11 billion di JPY fa , se ho contato giusto, quasi 80 milioni di EUR che fa 'quasi metà' di una stagione di formula 1.. non è che questi analisti si son dimenticati che Honda non avrebbe corso in formula 1 quest'anno?

Ma io gli analisti li lascerei perdere... mi interessano i risultati dell'azienda in pillole, le loro stime, l'outlook che danno sull'andamento del mercato e poco altro. Se leggo indicazioni esclusivamente sulle stime degli analisti, evito di pubblicare il commento... qualche volta rimangono lì nel contesto dei risultati, ma direi che a non considerarle affatto si fa meglio...

 

[Imark]

La trimestrale Q3/2009 di BMW è indicativa delle difficoltà che permangono nel segmento delle automobili premium... cala drasticamente l'EBIT rispetto ad un anno fa (- 84%) mentre il fatturato segna un - 6,6%.

La società conferma i target di profittevolezza per il triennio a venire e di ripresa delle vendite, anche in virtù dell'uscita di nuovi modelli, e intensifica il piano di taglio dei costi nel medesimo periodo (che eccederà l'obiettivo di 4 mld euro da conseguire entro il 2012).

Le vendite in termini di veicoli commercializzati caleranno nell'anno in corso fra il 10% ed il 15% sul 2008, come da forecast. BMW conferma inoltre l'obiettivo di chiudere i conti del 2009 in utile.

• NOVEMBER 3, 2009, 5:01 A.M. ET

UPDATE: BMW 3Q Net Falls 74% On Waning Demand For Luxury Cars

(Adds detail.)
By Christoph Rauwald

Of DOW JONES NEWSWIRES

BERLIN (Dow Jones)--BMW AG (BMW.XE) reported Tuesday that third-quarter net profit slumped 74% year-on-year, reflecting a steep fall in demand for luxury cars amid the recession, but confirmed that it expects to remain profitable in 2009 and anticipates a steady market improvement next year.

"We expect that the markets will make a gradual recovery over the coming year," BMW Chief Executive Norbert Reithofer said in a statement.

"The BMW X1 and BMW 5 Series Gran Turismo should provide good momentum. This trend will be fuelled further between 2010 and 2012 when the new versions of high-selling models come onto the markets," Reithofer said, adding that BMW still targets a return on sales in its auto segment of between 8% and 10% in 2012 and a return on capital employed of more than 26%.

The optimistic outlook wasn't sufficient to counter investors' disappointment with the earnings figures. At 0934 GMT, BMW shares traded down EUR2.30, or 6.8%, at EUR31.30, while the blue-chip DAX index traded down 1.4%.

BMW shares have gained around 20% in value over the past six months, outperforming a 4% rise of the Dow Jones Stoxx Europe 600 automotive and parts sector index, as investors expect premium automakers to be hurt less by an anticipated slump in demand after state-backed scrapping incentives in many markets expire. These scrapping incentives mainly revived demand for smaller cars rather than big luxury sedans.

Net profit in the third quarter fell to EUR76 million from EUR296 million in the same period a year ago, below analysts' estimates of EUR81 million.

Revenue skidded 6.6% to EUR11.8 billion from EUR12.6 billion in the third quarter of 2008. The company's closely watched earnings before interest and tax, or EBIT, contracted 86% on the year to EUR55 million from EUR387 million last year, missing analysts estimates of EUR177 million.

It posted an EBIT loss of EUR76 million at its core auto segment compared with EUR141 million profit in the third quarter last year.

BMW said third-quarter sales declined 7.2% on the year to 324,100 vehicles. The company confirmed that it expects vehicle sales this year to decline by between 10% and 15% compared with 2008. BMW sold around 1.43 million vehicles last year.

"It is still too early to give the all-clear for the world's automobile markets," Reithofer said.

BMW was particularly hard hit when demand for premium cars came to a grinding halt amid the economic downturn due to its large footprint in the U.S., which until recently was the Munich-based company's largest sales region ahead of its domestic market.

But the world's biggest luxury car maker by sales managed successful damage control as it scaled back production earlier than many other automakers when markets collapsed and kept cash burn at a relatively modest level.

Additionally, BMW initiated a wide-ranging program to trim costs and improve efficiency.

BMW plans to exceed its initial target of EUR4 billion of material cost reductions by 2012 as part of a wide-ranging cost-cutting target of EUR6 billion. Reducing expenses in materials, production and development are expected to account for two-thirds of the planned overall cost reduction.