Tuesday April 29, 10:17 AM
BMW first quarter profit fall 17 percent due to financial crisis
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FRANKFURT (AFP) - German luxury car group BMW (Xetra: 519000 - news) said Tuesday that its first quarter results were hit by the global financial crisis despite a rise in sales.
Net profit fell by 17 percent to 487 million euros (713 million dollars) from the same period a year earlier, while pre-tax earnings shed 25 percent to 641 million euros, the company said in a statement.
BMW's sales nonetheless gained 11 percent to 13.3 billion euros, and the group confirmed its full-year outlook for an increase in pre-tax profit, excluding exceptional items linked to its Rolls-Royce subsidiary.
Last week, the company had warned that the international financial crisis would trim 236 million euros from its first-quarter earnings.
The German group had developed leasing activities in the United States, its main export market, which suffered from credit defaults, late payments and problems in selling second-hand cars turned in by customers.
"Results in the first three months were affected in particular by the weak American economy," BMW's German-language statement said.
"The financial crisis worsened and the consumption climate grew dark again."
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