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BMW Earnings Slip 3%
BMW AG's net profit fell to €1.3 billion in the January-March period of 2013 from €1.4 billion a year earlier.
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BMW AG's net profit fell to €1.3 billion in the January-March period of 2013 from €1.4 billion a year earlier.
The company attributes the quarterly decline to heavy spending on new technologies, higher labor costs and weak European vehicle demand.
Revenue shrank 4% to €17.5 billion in the first quarter despite a 5% increase in worldwide sales of BMW, Mini and Rolls-Royce vehicles to 448,200 units. BMW brand volume rose 7% to a first-quarter record of 381,400 vehicles.
Group earnings before interest and taxes slid 5% to €2 billion. Automotive EBIT dropped 16% to €1.6 billion, for a 9.9% return on sales compared with 11.6% in the first quarter of 2012.
BMW's motorcycle and financial services units posted gains in pretax income of 35% to €50 billion and 4% to a record €449 million, respectively.
The company confirms its previous full-year outlook for a year-on-year advance in vehicle sales to a new record-high. BMW still expects group pretax profit to roughly match last year's €7.8 billion.
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