BMW’s Q1 profit plunges as it sets aside US$1.6 billion for EU fine
Shares of BMW fell 2.32% to €72.28 on Tuesday’s close after the firm said its operating profit for the quarter was at €589 million, compared to €2.7 billion a year earlier.
German automobile firm BMW’s first quarter profit sank 78% after the manufacturer said it has set aside US$1.6 billion to cover a potential fine from the European Union (EU) on an alleged collusion.
Shares of BMW fell 2.32% to €72.28 on Tuesday’s close after the firm said its operating profit for the quarter was at €589 million, compared to €2.7 billion a year earlier.
The stock has gained 3.6% since the start of the year.
Last month, BMW made a provision of more than €1 billion for a potential fine from the EU on an alleged collusion on cleaner-emission cars. Although BMW has set aside the provision amount, it plans to contest the allegations.
Revenue for the period fell by 1% to €22.4 billion, slightly better than the €22.3 billion experts had predicted.
‘We remain firmly on course and expect business to benefit from tailwinds, especially in the second half of the year, as numerous new models become available,’ said BMW’s chief executive Harald Krüger in a Financial Times article.
‘At the same time, we are experiencing the impact of high levels of expenditure in numerous areas affecting the entire automotive sector,’ he added.
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