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BMW's third quarter was affected by the advances of electricity car development

November 7, 2018 Business 2 Views The BMW logo is seen on the second press day at the Paris car…

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

Our Standards: Thomson Reuters Trust Principles.

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