|
: Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, reported a 74% plunge in third-quarter profit as the recession sapped demand for higher-priced models.
BMW dropped the most in more than six months in Frankfurt trading after reporting net income of 76 million euros ($112 million), or 12 cents a share, compared with 296 million euros, or 45 cents, a year earlier. Sales fell 6.6%to 11.8 billion euros, Munich-based BMW said on Tuesday
Government vehicle-scrapping incentives have helped revive demand for cheaper models, such as Volkswagen AG’s 17,000-euro Golf, without boosting deliveries of higher-priced cars such as BMW’s 73,000-euro 7-Series sedan. BMW has responded to the sales drop by building fewer vehicles, reducing work hours for as much as one-quarter of its workforce.
“It’s a miss,” said Philippe Houchois, an analyst with UBS AG in London. “It’s a surprise because I thought that there would be a base effect because they cut production early.” BMW fell as much as 1.95 euros, or 5.8%, to 31.66 euros in the biggest intraday decline since April 28, and was down 5.1% as of 9:48 am.
That pared the stock’s gain this year to 48%, valuing BMW at 20.3 billion euros. The company’s automotive division recorded a loss before interest and taxes of 76 million euros, compared with profit of 141 million euros a year earlier. The loss contrasts with Daimler AG’s Mercedes-Benz Cars unit, the world’s second-biggest luxury-vehicle manufacturer, which more than tripled Ebit to 355 million euros in the quarter.
More from International
Discuss this story on expressindia forums
|
|
 |
 |
 |
About Us | Contact Us | Advertisers | Site Map | Make us your homepage | Work for Us | RSS | Subscribe | Electronic Edition | Privacy Policy© 2009: The Indian Express Limited. All rights reserved throughout the world
