Mexican Media Brands
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.
#economics
Share
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.
RELATED CONTENT
-
What Suppliers Need to Know Right Now
This is a time of reckoning for the auto industry, says Paul Eichenberg. He has some recommendations as to how companies can make their way through it.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.