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BMW’s Net Profit Plunges 24% as Sales Slow
BMW AG reports a 5% gain in third-quarter revenue but a 24% drop in net income.
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BMW AG reports a 5% gain in third-quarter revenue but a 24% drop in net income.
The company says results were hurt by unfavorable exchange rates, higher raw material prices, warranty costs, the U.S.-China trade war and impact of Europe’s new WLTP emission certification rules.
Group vehicle deliveries in July-September rose only 1,900 units to 592,300 units, but that was enough to set a record high volume for the period. Revenue from automotive operations grew 3% to €21.1 billion ($24.1 billion).
Group net profit for the period plummeted 24% to an adjusted €1.4 billion ($1.6 billion). Group EBIT slid 27% to €1.7 billion ($2 billion). BMW says the decline was led by a 47% drop to €930 million ($1.1 billion) for the company’s automotive operations.
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