BMW AG, the world’s top manufacturer of luxury cars, reported its biggest profit in 2 1/2 years after demand for the new 5 Series surged and sales advanced in China and the United States, Bloomberg reported.

BMW rose to the highest price since 2007 in Frankfurt after second-quarter net income jumped almost sevenfold to 831 million euros ($1.1 billion) from a year earlier. Profit beat the 546 million-euro average estimate of nine analysts compiled by Bloomberg. Revenue climbed 18 percent to 15.3 billion euros, the Munich-based company said today.

BMW has sold 25,000 of the new 5 Series since the sedan went on sale in Europe in March. Record deliveries in China, the largest auto market, and a rebound in the U.S. have prompted BMW and Daimler AG to lift profit forecasts. Daimler said last week its third quarter would be determined by how fast it could produce Mercedes-Benz brand cars to meet orders.

“There’s still a lot to play for, because you’ve still got a lot of new models, cost savings, operational effects still to come through,” said John Buckland, an analyst at MF Global UK Ltd. who recommends buying BMW shares. “They’re producing good results and wanting to save something up for the future to save some growth for 2011 and 2012.”

BMW gained 1.29 euros, or 3.1 percent, to 43.16 euros at the close of trading at 5:30 p.m. in Frankfurt. That’s the highest level since Oct. 31, 2007. The shares have advanced 36 percent this year, valuing the company at 27.5 billion euros.

The manufacturer, which also builds Mini and Rolls-Royce cars, sold 13 percent more vehicles in the first half after customers bought the new X1 and 5 Series, which shares parts with the 7 Series to reduce costs. Second-ranked Mercedes-Benz posted a 12 percent gain. Deliveries at Volkswagen AG’s Audi unit, which aims to topple BMW as the world’s largest luxury-car manufacturer by 2015, gained 19 percent.

BMW raised its 2010 forecast on July 13, saying it expects sales to rise about 10 percent to more than 1.4 million cars and sport-utility vehicles. The operating margin at the automotive division will jump to more than 5 percent.

Daimler raised its 2010 operating profit target on July 27 to 6 billion euros after beating quarterly earnings estimates.

“Sharp sales volume growth on major markets and a high- value model mix are the main reasons for the strong second- quarter performance,” Chief Executive Officer Norbert Reithofer said today. “We have made good progress toward achieving our profitability targets.”

First-half deliveries in China more than doubled and now account for around 11 percent of all sales, Chief Financial Officer Friedrich Eichiner told a conference call. U.S. sales increased 6.4 percent. The carmaker plans to expand its dealer network in China and the U.S to support expansion in the two markets, it said.

The Rolls-Royce super luxury brand posted record first-half sales, with deliveries more than quadrupling to 970 cars.

Higher demand across all brands and regions is pushing BMW to its production limits, Reithofer said, predicting capacity utilization for 2010 would be “well above” 90 percent.