BMW AG’s profit downed 2.5 percent in the first quarter as vehicle prices dropped while continuing battle with Mercedes-Benz to keep its status as the world’s biggest developer of luxury automobiles.
The average cost of BMW’s automobiles decreased 5.9 percent to about 33,700 euros ($39,100) in the quarter as demand for cheaper vehicles like the X1 hatchback overwhelmed growth for the revamped 7-Series sedan. The shift contributed to earnings before interest and taxes declining to 2.46 billion euros, falling short of the 2.52 billion-euro average of 8 analyst price quotes compiled by Bloomberg.
BMW dropped 3 percent to 78.65 euros since 12:19 p.m. in Frankfurt trading. The stock has actually toppled 19 percent this year, evaluating the company at 51 billion euros.
Rates are under pressure especially for sedans in the U.S., Chief Financial Officer Friedrich Eichiner said on a call with press reporters. BMW is increasing production of sport utility vehicles including the X5 at its plant in Spartanburg, South Carolina, to match shifts in customer need.
