The BMW logo can be seen on the second day of the Paris Motor Show on October 3, 2018 in Paris (France). REUTERS / Regis Duvignau
FRANKFURT (Reuters) – German car manufacturer BMW ( BMWG DE ) reported Wednesday a decline in operating profit in the third quarter by 27 percent to 1
Analysts in a Reuters survey had expected earnings before interest and taxes (EBIT) of € 1.795 billion on average.
BMW said that despite a slight increase in luxury car deliveries, the operating margin for the automotive division fell from 8.6 percent in the previous year to 4.4 percent, well below the target of 8 to 10 percent.
Earnings were impacted by higher commodity prices, currency effects, higher goodwill and warranty provisions, tariffs between China and the US, and a price war in Europe, according to the carmaker.
Last month, BMW warned that its pre-tax profit would fall this year, bucking earlier expectations of a flat result and a reduction in car profit margin forecasts, blaming intense price competition.
($ 1 = $ 0.8747)
Reporting by Edward Taylor, Editor of Riham Alkousaa