Friday, May 02, 2008
BMW suffers quarter one profits dip
Carmaker records 17 per cent dip to €487m
BMW has announced that its first-quarter profits after tax fell by 17 per cent to €487m (£384m) but said it remained on course for a record sales year.
The German brand blamed the effects of the international financial crisis and a weaker US economy for “exceptional expenses”.
A loss of €236m in expenses, relating to additional risk provision in the car market and financial services segment, affected the group’s overall performance.
The Munich-based carmaker said the international financial crisis worsened in quarter one and the climate for consumer spending became gloomier, with used car prices falling.
This resulted in reduced revenue from vehicles at the end of lease contracts.
Despite the financial hit, BMW insisted it was on course to achieve its targets for the full year.
“Adjusted for the exceptional gain on the settlement of the exchangeable bond on shares in Rolls Royce in 2007, we are still aiming to post higher pre-tax earnings than last year," said Norbert Reithofer, chairman of the board of management of BMW AG in Munich today.
Compared to quarter one 2007, group revenues increased by 11.2 per cent to €13,285m but pre-tax profit fell 24.8 per cent to € 641m.
DATED: 02.05.08
FEED: MT
BMW has announced that its first-quarter profits after tax fell by 17 per cent to €487m (£384m) but said it remained on course for a record sales year.
The German brand blamed the effects of the international financial crisis and a weaker US economy for “exceptional expenses”.
A loss of €236m in expenses, relating to additional risk provision in the car market and financial services segment, affected the group’s overall performance.
The Munich-based carmaker said the international financial crisis worsened in quarter one and the climate for consumer spending became gloomier, with used car prices falling.
This resulted in reduced revenue from vehicles at the end of lease contracts.
Despite the financial hit, BMW insisted it was on course to achieve its targets for the full year.
“Adjusted for the exceptional gain on the settlement of the exchangeable bond on shares in Rolls Royce in 2007, we are still aiming to post higher pre-tax earnings than last year," said Norbert Reithofer, chairman of the board of management of BMW AG in Munich today.
Compared to quarter one 2007, group revenues increased by 11.2 per cent to €13,285m but pre-tax profit fell 24.8 per cent to € 641m.
DATED: 02.05.08
FEED: MT
