FRANKFURT (AP) -- German carmaker BMW AG said Thursday its 2009 net income fell 36 percent to euro210 million ($286 million) because of lower demand for its cars and motorcycles during the economic downturn as well as a higher tax rate.

BMW, the world's biggest luxury car maker, earned euro330 million in net income in 2008. Revenue in 2009 was nearly 5 percent lower to euro51 billion from euro53 billion in 2008.

The company, based in Munich, also builds motorcycles and the Mini and Rolls Royce car brands.

It did not release full fourth quarter figures, though BMW's complete earnings report is due March 17.

The company was unable to avoid a full-year operating loss of euro265 million measured as earnings before interest and taxes, or EBIT, because of poor demand in the downturn. However, the more stable market environment toward the end of 2009 saw fourth-quarter EBIT of euro93 million. In 2008, the company reported EBIT of euro690 million.

Group production for the year decreased nearly 13 percent to 1.26 million cars from 1.44 million in 2008. The BMW brand saw a 13 percent decline, Mini a 9 percent decline and Rolls Royce a 35 percent decline. The motorcycle division reported a 21 percent drop in production to nearly 83,000 bikes.

U.S. group unit sales were down more than 20 percent for the year to around 242,000 cars, but BMW forecast sales would increase in that key market in 2010.

In Germany, its single biggest market, BMW group unit sales declined more than 9 percent to 258,012 cars in 2009. The Mini brand recorded its best year to date in Germany, delivering 33,517 cars for the year.

Emerging markets helped the company through the downturn with strong growth in Brazil, China and India. Those three markets sold a combined 100,553 vehicles in 2009 and are expected to grow in 2010.

Despite the setbacks, BMW said it was cautiously optimistic for the current year. It said it expected to grow profitably due to new models and a gradual global economic recovery, but didn't give a specific forecast for earnings.

"Our new models will provide us with a tailwind over the course of the year," Norbert Reithofer, the company's chief executive, said in the report.

"We fully intend to remain the world's leading provider of premium cars in 2010 and plan to increase sales within the single digit percentage range to over 1.3 million vehicles" he said.

BMW said the 2009 dividend will remain unchanged at 30 euro cents a share.

Shares of BMW were more than 1 percent higher at euro32.60 in Frankfurt afternoon trading.