BMW's operating profit in the third quarter fell by 27% -Lithium - Ion Battery Equipment
According to Reuters, BMW reported that its operating profit fell 27% to 1.75 billion euros due to exchange rate factors and high R&D expenditure in the third quarter of this year. EBIT was lower than the 1.795 billion euros expected by Reuters analysts.(Lithium - Ion Battery Equipment)
BMW said that despite the slight increase in sales, the operating profit margin of the automotive business narrowed to 4.4% from 8.6% in the same period last year, far below the target range of 8% - 10%. The rising prices of raw materials, exchange rate effects, the improvement of goodwill and warranty terms, as well as the price war in Europe, have had an impact on its profits.
BMW predicted in October that its pre tax profit in 2018 would decline rather than be flat as previously expected. The company will lower its profit margin forecast due to fierce price competition.
BMW said that despite the slight increase in sales, the operating profit margin of the automotive business narrowed to 4.4% from 8.6% in the same period last year, far below the target range of 8% - 10%. The rising prices of raw materials, exchange rate effects, the improvement of goodwill and warranty terms, as well as the price war in Europe, have had an impact on its profits.
BMW predicted in October that its pre tax profit in 2018 would decline rather than be flat as previously expected. The company will lower its profit margin forecast due to fierce price competition.
