BMW suffers heavy loss during financial crisis
Car manufacturer BMW's earnings drop significantly compared to those of the previous year due to the international financial crisis.
Munich -- German auto group BMW AG reported Tuesday a bigger-than-forecast slump in its first quarter earnings as the global financial crisis and a slowing world economy took their toll on the world's leading luxury carmaker's profits.
Munich-based BMW said net profit fell to 487 million euros from 587 million euros a year earlier, despite an 11.2 per cent jump in revenue to 13.3 billion euros.
The car manufacturer's earnings fell short of analysts' predictions with first-quarter pretax profit slipping to 641 million euros from 852 million euros in the same period of 2007.
"The international financial crisis worsened and the climate for consumer spending became gloomier," BMW said releasing the results which were hit in particular by a weaker US economy.
However, the group confirmed its targets for 2008.
"Thanks to the strong operating performance, the BMW group nevertheless remains on course towards achieving its targets for the full year," the company said.
The group's shares jumped by more than one per cent to almost 36 euros following the release of the results.
BMW went on to say that it expects all its three brands - BMW, Rolls Royce and Mini - to book records sales in 2008.