New Emissions Tests Push BMW Into Profit Warning
Fakhir Rizvi Published September 25, 2018 | 07:41 PM
German high-end carmaker BMW said Tuesday that new stricter emissions tests for cars as well as refits to older vehicles and global trade tensions would leave revenues and profits short of its full-year forecast.
Frankfurt am Main, (APP - UrduPoint / Pakistan Point News - 25th Sep, 2018 ) :German high-end carmaker BMW said Tuesday that new stricter emissions tests for cars as well as refits to older vehicles and global trade tensions would leave revenues and profits short of its full-year forecast.
"The industry-wide shift to the new WLTP test cycle has... led to significant supply distortions in several European markets" and unexpectedly "intense competition", the Munich-based group said in a statement.
Tougher new regulations came into force this month, a reaction by authorities to Volkswagen's long-running "dieselgate" scandal in which the world's largest carmaker admitted to cheating emissions tests on millions of vehicles worldwide.
As well as the effects of "continuing international trade conflicts", BMW also highlighted "increased goodwill and warranty measures" weighing on its performance.
The group was forced to recall some 324,000 diesel-powered cars across Europe in August, citing risk of a fire in the motor, as well as around 8,000 vehicles fitted with software that reduced emissions during regulatory tests.
For 2018, BMW now forecasts revenues from its car business "slightly lower" than last year, rather than the "slight" increase previously expected.
In the same segment, its operating profit margin should reach "at least seven percent" rather than the eight to 10 percent it had targeted.
And group-wide profit before tax "is expected to show a moderate decrease" year-on-year, rather than staying around last year's level of 10.7 billion Euros ($12.6 billion).
Around 1:45 pm in Frankfurt (1145 GMT), BMW shares had shed 3.9 percent to trade at 80.25 euros, against a DAX index of blue-chip German shares up 0.2 percent.
Related Topics
Recent Stories
Tennis: ATP Barcelona Open results - 1st update
Swiatek's perfect 10 in Stuttgart as Vondrousova stuns Sabalenka
Arandu's roads closed due to flooding
Oil tanker catches fire in Islamabad’s Blue Area
Pakistan committed to ensure safety of foreign nationals: FO
Tennis: WTA Stuttgart results - 1st update
Four passengers injured as train hit an empty vehicle
Over- speeding bus crushed to death two bike riders
Turkey's Freedom Flotilla ready to set sail for Gaza
French teen dies from heart failure after knife attack near school
Iranians appear unfazed by Isfahan blasts
UAF celebrates Int'l Chinese Language Day
More Stories From World
-
Togo lawmakers approve contested political reform
3 hours ago -
NATO must choose 'whether we indeed are allies': Zelensky
3 hours ago -
US House to vote on Ukraine, Israel, Taiwan aid package
3 hours ago -
Calls for calm after reported Israeli strike on Iran
3 hours ago -
IMF calls on EU to deepen single market integration to boost growth
3 hours ago -
Second Ecuadoran mayor killed ahead of anti-crime referendum: police
3 hours ago
-
Oil, gas drilling blocked in Alaska wilds as Biden seeks green cred
4 hours ago -
Man sets self on fire outside Trump trial
4 hours ago -
Turkey's Freedom Flotilla ready to set sail for Gaza
5 hours ago -
French teen dies from heart failure after knife attack near school
5 hours ago -
Iranians appear unfazed by Isfahan blasts
6 hours ago -
Ecuador mayor killed ahead of anti-crime referendum: police
6 hours ago