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6
Nov

Gallery: Lexus IS-F
6
Nov
6
Nov

We’re used to seeing reports about BMW’s strong sales success and numerous model launches, so it’s a bit of surprise to hear the carmaker’s profit levels for the third quarter came in much lower than expected. BMW has since seen its share price fall more than 4% because of the poor result, which is being blamed on a strong euro, higher raw material costs and a significantly higher loss on its ‘reconciliations’ line.
BMW’s pre-tax figure of €765 million (US $1.1 billion) was well short of the expected €913 million from a Reuters poll of 20 analysts. Automotive News reports that brokerage firm Equinet believed the €135 million loss made by the reconciliations was over €100 million worse than estimated by the poll.
A statement issued by the company said, “segment earnings were adversely affected by exchange rate fluctuations, higher raw material prices, market launch and production start-up costs for new models and higher research and development costs.â€
This is the second major drop in BMW’s share price in recent times. In September the share price fell 8% following the release of an official strategy document, which was deemed unambitious by investors.