BMW: quarterly earnings decline 74%
(CercleFinance.com) - BMW posted on Tuesday a 74% slump in first-quarter profit as the German luxury carmaker had to book a provision of about 1.
4 billion euros ahead of a likely EU fine.
The Munich-based automotive group said that net profit fell to 588 million euros in the first three months of the year, from 2.3 billion euros in the first quarter of 2018.
While deliveries rose by 0.1% to a record 605,333 vehicles in the past quarter, revenue fell slightly (-0.9%) to 22.5 billion euros.
Due to the huge provision, BMW reported an operating margin at its automotive division of -1.6%, compared to +9.7% a year ago.
As a reminder, European antitrust regulators sent BMW, Daimler and VW a statement of objections last month, saying that the three German carmakers restricted competition on emission cleaning technology.
BMW said it plans to contest the Commission's allegations "with all the legal means at its disposal," and reaffirmed its targets for the current financial year.
After these announcements, BMW shares were down 1.2% this morning in Frankfurt.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
4 billion euros ahead of a likely EU fine.
The Munich-based automotive group said that net profit fell to 588 million euros in the first three months of the year, from 2.3 billion euros in the first quarter of 2018.
While deliveries rose by 0.1% to a record 605,333 vehicles in the past quarter, revenue fell slightly (-0.9%) to 22.5 billion euros.
Due to the huge provision, BMW reported an operating margin at its automotive division of -1.6%, compared to +9.7% a year ago.
As a reminder, European antitrust regulators sent BMW, Daimler and VW a statement of objections last month, saying that the three German carmakers restricted competition on emission cleaning technology.
BMW said it plans to contest the Commission's allegations "with all the legal means at its disposal," and reaffirmed its targets for the current financial year.
After these announcements, BMW shares were down 1.2% this morning in Frankfurt.
Copyright (c) 2019 CercleFinance.com. All rights reserved.