FRANKFURT—Germany's BMW AG said Friday its 2009 revenue fell 4.7% from a year earlier, reflecting the woes luxury car makers faced as demand for their vehicles contracted sharply, but that it still expects to post a profit for the year.

The Munich-based company said 2009 revenue fell to €50.68 billion ($70.3 billion), but it still hit its targets. BMW Chief Executive Norbert Reithofer attributed the forecast profit to cost management and other measures aimed at improving profitability.

"Despite the ongoing world-wide financial and economic crisis, the BMW group has, from today's perspective, achieved the objectives for 2009," the Munich-based company said in a statement.

Sales in 2009 fell 10.4% from a year earlier to 1.29 million cars, but BMW retained the crown as the world's best-selling premium car maker ahead of Daimler AG's Mercedes-Benz brand and Volkswagen AG's Audi AG unit. The company, which is expected to release detailed earnings figures for the fourth quarter and full year on March 17, previously had said it could avoid a loss even if sales slumped by up to 15%.

For 2010, the company expects a slight increase in vehicle sales, namely a single-digit percentage rise to 1.3 million cars. Growth is expected in Brazil,China and India – emerging markets where BMW also saw increased sales in 2009. The car maker also targets sales growth in Germany in 2010, and in the U.S. market as well.