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BMW Earnings Slip 3% to $1.7 Billion
BMW AG's net profit fell to €1.3 billion ($1.7 billion) in the January-March period of 2013 from €1.4 billion ($1.8 billion) a year earlier.
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BMW AG's net profit fell to €1.3 billion ($1.7 billion) in the January-March period of 2013 from €1.4 billion ($1.8 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 ($22.9 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 ($2.6 billion). Automotive EBIT dropped 16% to €1.6 billion ($2.1 billion), for a 9.9% return on sales compared with 11.6% in the first quarter of 2012.
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