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BMW’s Earnings Drop as Revenue Stalls
BMW AG’s third-quarter revenue was flat at €23.4 billion ($27.1 billion), and pretax profits fell 6% to €2.4 billion ($2.8 billion).
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BMW AG’s third-quarter revenue was flat at €23.4 billion ($27.1 billion), and pretax profits fell 6% to €2.4 billion ($2.8 billion). Net profit slipped 2% to €18 billion ($2.1 billion).
Unit car sales of BMW, Mini and Bentley brand vehicles advanced 1% to a record 590,400 units in July-September. But revenue shrank 2% to €21 billion ($24.3 billion). Deliveries through the first nine months of 2017 rose 4% to a record 1.81 million cars and SUV/crossover vehicles.
BMW reiterates that r&d spending will be above average for the next few years in such areas as electrified powertrains and technologies related to vehicle connectivity, automated driver aids and mobility services. The company describes such spending as necessary for its long-term sustainability.
For the full year, BMW says budgeting and strong demand generated by new models will boost pretax profit by 5%-10%, up from a previously forecast range of 1%-5%.
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