Sunday 25 June 2017

BMW posts flat profits as investments erode automotive margins

The rear view of the BMW 5 series
The rear view of the BMW 5 series

Edward Taylor

BMW posted flat third-quarter operating profit on Friday as investments in new technologies to cut pollution and increase safety ate into profits from sales of its premium cars.

BMW said third-quarter earnings before interest and taxes (EBIT) was €2.38bn, in line with the €2.37bn consensus estimate in a Reuters poll.

The return on sales at BMW's automotive division fell to 8.5pc from 9.1pc a year earlier, the company said on Friday, marking the 26th consecutive quarter automotive profits have been within its target range of between 8pc and 10pc.

Reuters

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