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BMW’s Net Profit Plunges 74%
BMW AG reports that its group net profit shrank to €588 million ($659 million) in the first quarter from €2.3 billion in the same period last year.
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BMW AG reports that its group net profit shrank to €588 million ($659 million) in the first quarter from €2.3 billion in the same period last year.
Group deliveries advanced by 700 units to 605,300 cars, enough to set another first-quarter sales record. Revenue in January-March slipped 1% to €22.5 billion ($25.2 billion).
The company says first-quarter earnings were hurt by a €1.4 billion provision to cover likely European Union penalties regarding anti-trust claims that German carmakers conspired to restrict development of emission-control technologies.
BMW says the provision will trim its pretax earnings margin this year to about 5.5% from its previous guidance of 7% when the charge is excluded. The company predicts its full-year deliveries of new cars will rise slightly to 2.49 million units.
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