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BMW drives up profit
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July 31, 2000: 7:10 a.m. ET
3-series sales lift first-half profit, losses at former U.K. unit widen
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LONDON (CNNfn) - German car manufacturer Bayerishe Motoren Werke AG (BMW) reported a 67 percent rise in first-half profit Monday, within the top end of expectations, on accelerating sales of 3-series models.
Munich-based BMW said net income rose to  319 million ($295 million) from 191 million, in the year-earlier period. Sales rose 15 percent to 18.8 billion.
Still, the company posted more losses for its disastrous 6-year association with Rover Cars. Germany's third-biggest carmaker was plagued by losses in its U.K. subsidiary Rover until it opted to dispose of both Rover Cars and sport/utility vehicle maker Land Rover. It agreed in May to sell the car unit to U.K. investment firm Phoenix for a symbolic purchase price of £10 ($15.36).
 Losses at Rover Cars rose to 762 million in the period from 662 million, contrasting with an 18.8 percent rise in profit from BMW cars to 1.34 billion. Sales of BMW cars rose 8.8 percent to 421,000 units, while sales of 3-series models jumped 14 percent.
The company also sold its Land Rover division to Ford Motor Co. (F: Research, Estimates) for 3 billion ($2.8 billion), and is set to hand the business over to Ford at the end of this month. BMW has developed its own sports activity vehicle called the BMW X5, which will go head-to-head with Range Rover models.
BMW is also attacking the small-car market, having kept the juiciest part of Rover, the Mini. The Mini will make its debut at the Paris Motor show in September.
Shares in the automaker jumped 1.26, or 3.1 percent, to 37.61 in Frankfurt after the company said it expects to sell more than 800,000 units this year, setting a new record for BMW. 
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