BMW post record profits for 2006

German automaker Bayerische Motoren Werke AG is the world’s largest luxury automaker and the company has said in a statement that its profit rose 28 percent to a record as they saw impressive demand for their X5 sport-utility vehicle and 3-Series sedan.

The company also gained from the sale of their stake in a plane-engine maker. BMW’s net income was up at 2.87 billion Euros from 2.24 billion.

BMW said that they expect sales to improve even more this year and they expect to maintain a lead over arch rival Mercedes.

Company revenues were up 5 percent to 49 billion Euros from 46.7 billion Euros a year earlier. The sales were up 5.2 percent to 1.19 million vehicles.

BMW is expected to face more competition from Volkswagen’s Audi brand which is enhancing its product portfolio to enhance sales in the world markets.