(Adds share price, background on currency)
By Jon Cox
ST GALLEN, Switzerland, May 23 (Reuters) - German luxury carmaker BMW said on Friday business in North America and Asia was doing well and said its earnings would be unaffected by currency fluctuations this year due to hedging.
Chief Executive Helmut Panke also reiterated the Munich-based company aimed to match last year's profits in 2003. "In general, you see North America and Asia as a whole are doing better and that is the same for us," Panke told Reuters on the sidelines of the St Gallen management symposium.
"Europe, and Germany in particular, are not that strong. But overall the European market is down by just a single digit figure," he said. "We should not really complain."
According to Brussels-based carmakers' group ACEA, western European auto sales are down 3.4 percent so far this year.
Panke also said the dollar's weakness against the euro would not crimp earnings this year because it was fully hedged.
"We have completely covered our dollar position for this year and we already have a strategically strong position next year so the dollar-euro relation won't influence our profits this year," he said.
The recent strengthening of the euro against the dollar is a headache for German carmakers whose profits have been boosted in the last couple of years by a weak euro which made exports to the U.S. cheap.
The euro jumped above its launch level against the dollar on Friday and despite hedging policies, investors have become nervous. Goldman Sachs recently downgraded the European auto sector on currency concerns.
BMW shares narrowed their losses after Panke's comments and at 1519 GMT, they were down just 0.1 percent at 27.10, outperforming the European sector , down 1.6 percent.
BMW is aiming to match last year's record earnings. Last year pre-tax profits rose two percent to 3.3 billion euros, while net income rose eight percent to 2.0 billion.
BMW's plush models have typically kept its profits roaring ahead of mass market rivals like VW , while sales of its iconic Mini, a brand salvaged from the disastrous takeover of Britain's Rover in 1994, have also stormed ahead.