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BMW Q1 Profit From Cont. Opns Rise, Volume Down; Warns On FY20 Pre-tax Profit

German luxury carmaker BMW AG (BMW.L,BAMXF.PK,BAMXY.PK) on Wednesday reported that its first-quarter Group net profit dropped 2.4 percent to 574 million euros from last year's 588 million euros. Earnings per share were 0.84 euro, down 1.2 percent from 0.85 euro a year ago.

On a continuing operations basis, profit grew 5.5 percent to 574 million euros from 544 million euros last year.

Profit before tax grew 4.7 percent to 798 million euros. Group EBIT surged to 1.38 billion euros from 589 million euros a year ago.

Group revenues increased 3.5 percent to 23.25 billion euros from last year's 22.46 billion euros.

In the quarter, Automotive segment revenues dropped 6.4 and Motorcycles revenue fell 4.9 percent, while Financial Services revenue grew 6.3 percent.

Automotive segment deliveries fell 20.6 percent to 477,111 units, and Motorcycles deliveries fell 9.9 percent to 34,774 units.

Looking ahead, the company said, "Within a volatile environment, currently overshadowed by the global spread of coronavirus, business is expected to develop negatively during the financial year 2020. …. Research and development expenses will remain at a high level to propel forward-looking projects. In light of the negative impact of the worldwide corona crisis, profit before tax during the period covered by the outlook is likely to decrease significantly."

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