bmw pricing trends weighing on margins
Last Updated : GMT 13:26:10
Arab Today, arab today
Arab Today, arab today

BMW: Pricing trends weighing on margins

Arab Today, arab today

Arab Today, arab today BMW: Pricing trends weighing on margins

Berlin - Arabstoday

BMW’s operating profits from its core car business fell more than expected in the first quarter, weighed on by discounting in some European markets and technology costs. Earnings before interest and tax (EBIT) plunged 15.9 percent to 1.58 billion euros ($ 2.1 billion), BMW said, short of the average forecast given by analysts of 1.6 billion euros, while the operating margin dropped to 9.9 percent from 11.6 percent as car sales slipped 1.6 percent to 15.91 billion euros. “The business environment we’re operating in is becoming ever more uncertain and volatile,” Chief Executive Norbert Reithofer said, ruling out a recovery in the short term in European demand. However, the Munich-based company reaffirmed its aim of pushing total vehicle sales this year to a new record. It also still aims to match last year’s record group pretax profit and achieve an operating margin of between 8 and 10 percent in automotive operations. German luxury brands such as BMW, Volkswagen’s Audi and Mercedes have fared better in the economic downturn than their European mass-market rivals such as Peugeot. BMW said net prices for its cars in the first three months of the year fell by more than the 0.5 to 1.0 percentage points projected for 2013, as manufacturers in Europe battle the slump with ever deeper discounts. “Pricing trends are of course not positive and, to an extent, are weighing on margins,” Finance Chief Friedrich Eichiner said, without being more specific. BMW is ramping up its spending on research and development of fuel-efficient technologies as well as new models such as the Megacity electric car, dubbed the i3. Related costs should subside after 2014, the CFO said. Meanwhile car sales in China may rise by a high single-digit or low double-digit percentage rate this year, BMW reaffirmed, compared with the company’s 40 percent growth in 2012. First-quarter sales growth in China was held back by declining imports of vehicles such as the flagship 7-Series and X5 and X6 sport-utility vehicles from Germany and the United States, Bernstein analyst Max Warburton said in a note. In comparison Audi posted a smaller drop in its quarterly operating margin to 11.1 percent from 11.4 percent. Audi, luxury-market leader in China and Europe, is also targeting a range of 8 to 10 percent for 2013. Mercedes has fallen further behind its German rivals, struggling to match BMW and Audi’s scale and efficiency in smaller cars as well as their success in China. The brand’s first-quarter margin plunged to 3.3 percent from 8.2 percent. Parent Daimler abandoned its earnings forecast for a second time in six months on April 24 after its quarterly profit plunged by more than 50 percent due to the market malaise in Europe and Chinese distribution problems. “While we continue to rate BMW as ‘outperform’ and see it as the best of the Germans in 2013, it is hard to see the market getting newly enthused,” Warburton said. BMW’s shares were up 1.2 percent at 70.92 euros at 1101 GMT, when shares in VW were down 1.3 percent at 151.85 euros and Daimler was off 0.5 percent at 41.805 euros. Source: ArabNews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bmw pricing trends weighing on margins bmw pricing trends weighing on margins

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bmw pricing trends weighing on margins bmw pricing trends weighing on margins

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Solaf happy for participating in “Hotline”

GMT 07:56 2017 Wednesday ,22 November

Solaf happy for participating in “Hotline”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday