BMW tackles falling profit
BMW's first-quarter pre-tax profit fell 4.6 per cent, with disappointing sales of its 3-Series vehicle, the world's largest premium carmaker said overnight.
However, the launch of BMW's revamped 3-Series saloon is expected to boost sales. The company also hopes the BMW brand may take over the pole position from Mercedes-Benz as the world's best-selling luxury marque this year.
BMW said it expects earnings this year to roughly match its record 2004 result, helping soothe investor fears after rumours of a profit warning surfaced last week.
Earnings before taxes declined to 812 million euros ($1.35 billion).
"Significantly higher raw material prices, currency factors and increased competitive pressure all had a negative impact during the first quarter 2005," the company said.
Source: The Daily Telegraph