BMW Q1 Pre-tax Profit Down On Weak Revenues; Deliveries Rise; Backs FY18 View

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Luxury carmaker BMW AG(BMW.L, BAMXF.PK, BAMXY.PK) reported Friday that its first-quarter Group net profit increased 1.2 percent to 2.30 billion euros from last year's 2.27 billion euros.

Group profit before tax amounted to 3.17 billion euros, down 0.5 percent from 3.18 billion euros a year ago, with rising costs and upfront expenditure for R&D activities.

Profit before financial result or EBIT dropped 3.1 percent to 2.73 billion euros. The EBT margin for the Group came in at 13.9%, higher than 13.3%, and was the highest quarterly figure since 2011.

Due to currency effects, Group revenues fell 5.1% to 22.69 billion euros from last year's 23.93 billion euros. Adjusted for currency effects, revenues were down 0.7%.

First-quarter deliveries of BMW, MINI and Rolls-Royce brand vehicles rose 3% to 604,629 units from 587,237 units last year. All three major sales regions contributed to the increase.

Further, BMW Group reaffirmed its outlook for full year 2018.

Harald Krüger, Chairman of the Board of Management of BMW AG, said, "We are targeting new record figures in the Automotive segment for sales volume and revenues in 2018. Group profit before tax is expected to be at least at the previous financial year's level."

Further, the BMW Group has announced that - if approved by the competition authorities in the current year - the foundation of the mobility services joint venture will have a one-off valuation and earnings effect and will result in an adjustment to the outlook. Under these circumstances, the Group profit before tax for 2018 would be slightly higher than one year earlier.

The BMW Group continues to forecast an EBIT margin in the target range of 8 to 10% for the Automotive segment.