The BMW logo is seen on the second press day at the Paris car show in Paris, France on October 3, 2018. REUTERS / Regis Duvignau
FRANKFURT (Reuters) – German Car Manufacturer BMW ( BMWG. DE ) On Wednesday, a decrease of 27 percent of operating profit for the third quarter was reported at 1
.75 billion euros (2.00 billion dollars). Analysis expectations are lacking in connection with currency loss and higher research and development costs.
Analysts in a Reuters vote had averaged earnings before interest and taxes (EBIT) to reach 1.795 billion euros.
BMW said that despite a slight increase in luxury car delivery, its operating return on the automotive division decreased to 4.4 percent from 8.6 percent the year before, well below its targeted range of 8 to 10 percent.
The result was higher commodity prices, currency effects, higher provisions for goodwill and guarantee measures, customs between China and the United States and a price war in Europe, said the carmakern.
Last month, BMW warned that the loss of profit would fall this year, against previous expectations of a flat profit and reducing profit margin guidance for cars that blame for intensive price competition.
($ 1 = 0.8747 euros)
Reporting by Edward Taylor, Editing Riham Alkousaa
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