BMW AG, the world’s biggest premium automaker, said that it may have to rethink its earnings target by August. The recovering luxury car markets are being led by China.
For the first quarter, BMW posted a 2.7% margin at its automobiles segment after the division’s earnings before interest and tax (EBIT) exceeded expectations by 35% to reach 291 million euros ($388 million). The company conducted an inventory clear-out of its old BMW 5-series models before the next generation’s European relaunch set in late March. As a result, some analysts were led to incorrectly predict higher incentives in the first quarter, with a resulting drop in profitability.
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