Mexican Media Brands
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.
#economics
Share
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.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.