Bayerische Motoren Werke AG, the world’s largest maker of luxury cars,

BMW Stock Rises as Chief Forecasts 'Clearly Positive' Earnings

rose to a three-week high in Frankfurt trading after predicting “clearly Positive” earnings following moves to counter the global financial crisis.

BMW gained as much as 1.74 euros, or 8.4 percent, to 22.31 euros, the highest intraday price since Oct. 14, and was up 7.3 percent as of 11:56 a.m. The stock has declined 48 percent this year, valuing the company at 14.2 billion euros ($18.1 billion).

Chief Executive Officer Norbert Reithofer said on a conference call today that, while the Munich-based carmaker can no longer specify a 2008 earnings target, BMW will “clearly” be profitable after scaling back production and jobs as auto markets contract. Third-quarter profit fell 63 percent, and BMW abandoned targets for record vehicle sales as well as its 2008 margin goal.

Source [ Bloomberg ]