BMW's first-quarter operating profit fell 78 percent to 589 million euros, ...
FRANKFURT - BMW’s first-quarter operating profit fell 78 percent to 589 million euros, despite higher deliveries of luxury vehicles, as the carmaker felt the effects of higher investment spending and a 1.4 billion euro legal provision.
Adding to the downbeat tone, the company reiterated that it expects group profit before tax to be well below the previous year’s level. “Business is not doing well at BMW,” NordLB analyst Frank Schwope said. That view was shared by Evercore ISI analyst Arndt Ellinghorst who said: “BMW has entered a period of weakness. The question is, how long will it last?”The carmaker struck to its full year outlook of an increase in vehicle deliveries, and its goal of aiming for an EBIT margin of between 8 percent and 10 percent.
To counter rising costs, BMW said it will cut the available engine and gearbox combinations by 50 percent and seek efficiency savings of more than 12 billion euros by the end of 2022.Excluding the impact of the legal provision to cover a potential anti-trust fine, BMW’s automotive division delivered an operating margin of 5.6 percent in the first quarter.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mike Doyle, surfing legend from ‘the wrong side of Interstate 5,’ dies at 78 in MexicoThey called him “Malibu Mike,” a tall kid who rode the waves with a muscular aggression many in SoCal surf had never seen before.
Read more »
New video shows the moment the Russian Aeroflot jet burst into flames during an emergency landingAeroflot Flight SU1492 burst into flames during an emergency landing at Moscow's Sheremetyevo Airport on Sunday. 41 of the 78 people aboard died.
Read more »
Occidental revises bid for Anadarko in buyout battle with Chevron, offers mostly cashOccidental Petroleum submitted a revised buyout offer to Anadarko Petroleum, offering 78% cash and 22% stock rather than a 50-50 split.
Read more »
It's only May and the federal deficit is higher than it was in all but five full-year deficits in U.S. historyIf President Donald Trump’s spending and tax policies continue, a new CBO report found, the U.S. national debt will rise from 78 percent to 105 percent of the economy over the next decade.
Read more »
Tesla's infotainment system is better than any other auto brand's, according to Consumer ReportsEighty-six percent of surveyed owners reported being 'very satisfied' with Tesla's infotainment system, 6% higher than the runner-up, BMW.
Read more »
Volkswagen earnings: Q1 operating profit comes at 3.9 billion euros, vs. 3.9 billion euros expectedIn a report issued at its Global Supertrends Conference, Credit Suisse discussed 'the most significant societal changes' that could result in tangible investment opportunities.
Read more »