Wednesday, November 7, 2018
Negative news from Munich: BMV car maker recorded a sharp decline in profits in the third quarter. The basic business margin is still weaker than expected. Already reduced forecast.
In the third quarter, BMV recorded a sharp decline in profits despite higher sales. The margin in the core business of high-end cars has fallen even more than analysts were afraid in any case.
The Munchen carmaker pointed to strong competition, provisions and burdens stemming from commercial conflicts as justification. However, Dak Group holds the company according to the year-on-year forecast, which was cut in September.
Sales rose 4.7 percent in three months to 24.74 billion euros. In contrast, operating profit (EBIT) fell by 27% to EUR 1,745 billion.
In the automotive business he earned 930 million euros in BMV, which is a decline in almost half. The operating margin fell to just 4.4% from 8.6% in the previous year. Below the line, the Group made a profit of 1.38 billion after 1.82 billion euros in the previous year.
Accordingly, the group is doing better in terms of sales than expected on the market, while analysts expected profit to be higher. For the whole year, BMV continues to expect pre-tax profit, which is moderately below the previous year. In automotive business, sales are likely to be slightly lower than the previous year, and the EBIT margin at least 7 percent.