The high-end car makers net profit slumped 16.9% to €7.2bn
A BMW logo on a car at the 87th International Motor Show at Palexpo in Geneva, Switzerland. Picture: REUTERS/DENIS BALIBOUSEProfits at German high-end car maker BMW tumbled in 2018, the firm said on Friday, with trade headwinds and tough new EU emissions tests' drag on performance set to last into 2019.
"Challenges facing the entire sector are unlikely to diminish in the coming months," CEO Harald Krüger said in a statement.The Munich-based firm pointed to"political uncertainty, a cooling global economy … rising production costs to meet regulatory requirements, exchange-rate effects and rising raw materials prices" as weights on its earnings.Revenues were less strongly affected, falling 0.8% to €97.5bn.
The scrambling by other car makers to sell cars not certified under the so-called WLTP test cycle before its introduction in September led to"unexpectedly intense competition", BMW said, penalising the group for its decision to adopt the new procedure early. Meanwhile the group's bottom line also suffered as it was ordered to recall more than one-million diesel cars to replace faulty components.
BMW boosted unit sales at its flagship brand slightly, to 2.1-million cars, but deliveries of Minis fell back 2.8%, to 361,500.Looking to different world regions, sales in Europe were flat while the Americas and Asia recorded slight growth.Bosses said they would offer shareholders their second-highest dividend payout ever, at €3.50 per share.Investors offered a mildly positive reaction to the news, with BMW stock gaining 1.1% to trade at €74.59 at 11.30am in Frankfurt.
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