BMW warns of difficult 2019 as it posts lower 2018 profit


BMW will step up cost cutting in anticipation of a difficult year.
FRANKFURT (Reuters)

BMW will step up cost cutting in anticipation of a difficult year, the German carmaker said on Friday, as it reported a 7.9 percent fall in 2018 operating profit due to higher investments in electric cars and currency headwinds.
“We expect strong headwinds to continue to effect the entire sector in 2019,” Chief Financial Officer Nicolas Peter said in a statement.
“In view of current developments, we intend to further broaden and significantly intensify these (cost-cutting) efforts,” he said, adding the company would reduce the number of vehicle variants on offer.
As a result, BMW will not make a successor to the 3 series Gran Turismo model, it said.
BMW’s 2018 earnings before interest and taxes fell to 9.12 billion euros (7.8 billion pounds), just ahead of the 8.94 billion euros forecast by analysts in a poll.
The carmaker said its return on sales for its automotive division fell to 7.2 percent from 9.2 percent a year earlier, as investments in electric cars and a price war triggered by new emissions tests weighed on profit.
Reporting by Edward Taylor; Editing by Thomas Seythal and Mark Potter (Reuters)
What's Your Reaction?

[EN] CLAIRE DOMERGUE, A SPECIALIST IN COMMUNICATION IN THE LUXURY SECTOR, HAS SURROUNDED HERSELF WITH EXPERTS TO CREATE THE FIRST MEDIA DEDICATED TO THE ECONOMIC NEWS OF LUXURY AND FASHION. THE LATTER DRAWS THE ATTENTION OF ITS READERS TO ALL THE MAJOR PLAYERS IN THESE SECTORS WHO SHARE THEIR EXPERIENCES, VISIONS AND KNOW-HOW. MORE THAN A SPECIALIZED WEBZINE, LUXUS PLUS IS A MULTI-SECTOR INFORMATION SYSTEM, WHICH HAS BECOME THE REFERENCE MONITORING TOOL FOR LUXURY AND FASHION PROFESSIONALS. OUR NEWSLETTERS CONTRIBUTE TO MAKE OUR READERS AWARE OF THE CHANGES AFFECTING THE LUXURY INDUSTRIES. THANKS TO AN INCREASED WATCH AND AN EXCELLENT KNOWLEDGE OF THE SECTOR, WE ARE INTERESTED IN THE MAIN ECONOMIC AND TECHNOLOGICAL STAKES OF FASHION, FINE WATCHMAKING, JEWELRY, GASTRONOMY, COSMETICS, PERFUMES, HOTELS, PRESTIGIOUS REAL ESTATE...********[FR] Claire Domergue, spécialiste de la communication dans le secteur du luxe, s’est entourée d’experts pour créer le premier média consacré à l’actualité économique du Luxe et de la mode. Ce dernier attire tout particulièrement l’attention de ses lecteurs sur l’ensemble des acteurs majeurs de ces secteurs qui y partagent leurs expériences, visions et savoir-faire. Plus qu’un webzine spécialisé, Luxus Plus est un système d’information multi-sectoriel, devenu l’outil de veille de référence pour les professionnels du luxe et de la mode. Nos newsletters de veille contribuent en effet à sensibiliser nos lecteurs aux mutations qui touchent les industries du luxe. Grâce à une veille accrue et à une excellente connaissance du secteur, nous nous intéressons aux principaux enjeux économiques et technologiques de la mode, la haute horlogerie, la joaillerie, la gastronomie, des cosmétiques, parfums, de l’hôtellerie, l’immobilier de prestige…