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.

BMW Source: Bloomberg

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.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.