German luxury carmaker BMW has repeated it is on course for a record year in revenues and sales , but its third quarter figures were slightly down on estimates. Shares fell sharply by more than two percent on the news, adding to the eight percent drop in the company’s stock this year. It seems contradictory, but costs and losses at the leasing division dragged down the overall figures, although analysts noted BMW’s leasing shifts profits into the future.The Bavarian company has been knocking spots off main rival Mercedes this year, overtaking it in terms of sales as Mercedes struggles with quality and reliability problems, and has launched several new models that are proving popular. It expects growth to continue well into next year, although there are fears negative currency factors could shave hundreds of millions of euros off profits in 2005, which in part explains the drop in share price.
Strong BMW results, market unimpressed