German luxury car maker BMW has reported bumper quarterly results on the back of record car sales.

The firm reported a net profit in the three months to June of 1.2bn euros, up 33 per cent from 2005.

BMW, the world's largest premium carmaker, said second-quarter revenue jumped 8.5 per cent to 13.2bn euros.

For the first half of 2006, BMW posted net income of 2.6bn euros, an increase of 44.5 per cent over the previous year.

Revenue for the first six months of the year rose by 10.2 per cent to 24.8bn euros.

Both sets of results easily beat market expectations.

"After a successful start to the year, the BMW Group continued to perform very well in the second quarter 2006," the company said in a statement.

"By achieving record figures for sales volume and revenues and the best half-year result in the company's history, the company has once again demonstrated its operating strength and asserted its position as the leading premium manufacturer."

The Munich-based company said quarterly sales of its BMW, Rolls-Royce and Mini vehicles climbed 3.2 per cent to 365,547 units.

Looking ahead, BMW predicted that it would make a full-year pre-tax profit of about 4bn euros.

However, the luxury carmaker did warn that high steel prices could have a negative impact on the company.

Shares in BMW jumped 2.3 per cent in early trading in Frankfurt.