Tuesday , February 7 2023

BMW reduced its net profit in the third quarter despite revenue growth


The German automaker, Bayerische Motoren Werke (BMW), reduced its net profit in the third quarter of 2018, despite an increase in revenue.

According to the company's press release, its net profit in July-September was 1.405 billion euros, up from 1.8446 billion euros for the same period last year, Interfax-Ukraine reports.

Pre-tax profit fell to EUR 1.845 billion from EUR 2.503 billion and EBIT declined to EUR 1.75 billion from EUR 2.3 billion.

Revenues increased from 23.63 billion euros to 24.74 billion euros.

On average, analysts expect the company's profit before tax to be 1.89 billion, EBIT – 1.91 billion, revenue – 23.59 billion euros.

In the third quarter, the EBIT revenue fell 4.4% to 8.6%, while motorcycle production fell to 6.9% from 10.4%.

In July-September, BMW, Mini and Rolls-Royce brand car sales rose by 0.3% to 592,303 thousand vehicles, from 590,415 thousands in the same period last year. Motorcycle sales grew by 1% to 39,818 thousands.

From January to September were sold 1 million. 834,810 thousand Car (1.3% more).

BMW confirmed its 2018 forecast, which implies a slight reduction in pre-tax profit and at least 7% of the car industry's profits.

Thirdly, BMW shares at the beginning of trading on Wednesday, cheaper than by 2.6%. Since the beginning of the year, the capitalization of the company has decreased by 14%, reaching 50.26 billion euros.

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