BMW profit hit by antitrust case spending on technology

FRANKFURT — German automaker BMW says its profits fell 74 per cent in the first quarter as earnings were hit by a 1.4 billion-euro ($1.6 billion) set-aside for an expected anti-trust penalty from the European Commission and by higher up-front costs for new technology and factories.Net profit fell to 588 million euros from 2.28 billion euros in the same quarter a year earlier. Revenue fell 0.9 per cent to 22.46 billion euros.The Munich-based company was able to slightly increase the number of vehicles sold to 605,333 and said Tuesday it expected “tailwinds” in the second half as more new models hit the market.The European Commission is investigating automakers on suspicion they colluded to restrict competition in the development of emissions-reduction technology. BMW disputes the allegations but says a fine is likely.The Associated Press

Leave a Reply

Your email address will not be published. Required fields are marked *