Bmw in the Slow Lane for Market Expectations

Summary


BMW - now the world's largest premium carmaker - yesterday posted third-quarter pre-tax profits that fell far short of market expectations amid a strong euro and higher raw material costs, sending its shares sharply lower.

Earnings before tax rose 6.3 per cent to 765 million euros (pounds 534.9 million), badly missing the average estimate of 913 million euros (pounds 638.4 million) from a poll of 20 analysts, due to weaker than expected profits at its core automotive division and a significantly higher loss on its "reconciliations" line.

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Bmw in the Slow Lane for Market Expectations

At one point its shares fell more than four per cent, making BMW the worst performer among both European auto peers and German blue chips.

Regional state bank LBBW said profitability at the automotive ...

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