BMW profits quadruple

Car sales were up, but getting rid of Rover was the main reason why profits rose

BMW has reported a 370% rise in net profit for the first quarter of 2001 to 409m euros ($362m, £254m).

The successful developments in sales and earnings will also be continued in the full 2001 business year

BMW

The result was better than analysts had expected.

Operating profits rose 333% to 853m euros, while sales rose 7.2% to 9.37bn euros.

"The successful developments in sales and earnings will also be continued in the full 2001 business year," BMW said.

Bogged down by Rover

A year earlier, the German car maker's profits were bogged down by its loss-making UK subsidiary Rover.

BMW kept the Mini when it sold Rover

The sale of Rover last May, for a symbolic £10, was the main reason why BMW's profits rose so sharply, the company said.

Last month, BMW said it had "drawn a line" under its 4.1bn euros losses from Rover.

When Rover was sold, the German car maker retained the Mini which will be built at the Cowley plant outside Oxford.

In addition, BMW retained the rights to use the Triumph and the Riley names.

BMW shares rose 3.62% in morning trading in Frankfurt, reaching 40.90 euros - a high for 2001.