Munich - The world's leading luxury carmaker BMW said Wednesday that it expects a further drop in sales this year and plans to extend short-time working.

"We don't believe we can reach the sales turnover of 2008," chief executive Norbert Reithofer told the company's annual press conference.

Last year BMW sold 1.4 million vehicles, 4.3 per cent down from 2007. Reithofer declined to make a prediction for 2009, saying it would be a year of transition.

The news sent BMW shares dipping 2.1 per cent to 22.37 euros (29 dollars) in morning trading on the Frankfurt stock exchange.

In figures released last week, BMW said net profit plummeted by 89 per cent to 330 million euros as sales slumped around the world in the wake of the deepening global recession.

Revenue dropped by five per cent to about 53.2 billion euros with the results underscoring the crisis that has taken hold in the global car business. The carmaker posted a fourth-quarter loss before interest and tax of 718 million euros.

A BMW spokesman said Wednesday the company planned to extend short time working at its plants in Regensburg and Dingolfing throughout April and May.

He said this would mean 40,000 fewer cars being produced, in addition to the cutback of 38,000 as a result of short-time working in February and March. (dpa)