Germany BMW becomes 3rd automaker to expect flat profits for '13

19 March 2013 19:58  [Source: ICIS news]

HOUSTON (ICIS)--German automaker BMW on Tuesday forecast that its 2013 pretax profit would remain flat on lower auto sales in Europe and costs related to the 25 new models it plans to bring to market over the next two years.

Speaking at the company’s annual press conference, CEO Norbert Reithofer said, “The global financial environment is both uncertain and volatile. Our business performance is exposed to many risks.”

Volkswagen and Daimler have also forecast that 2013 operating profit will remain at last year’s levels as the region’s auto market shrinks for a sixth straight year.

BMW, Volkswagen and Daimler all posted European sales drops in February, according to data released from the ACEA industry group.

“BMW can’t escape the very weak European market and needs to step up investments as the current models are aging,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler. “Profit will drop this year and margins will fall.”

Of the 25 new vehicles coming to market through 2014, 10 of them are new to the lineup, Reithofer said.

Pretax profit climbed 6% to €7.82bn ($10.16bn) in 2012 as revenue climbed 12% to €76.8bn, the automaker said last week.

The American Chemistry Council (ACC) estimates that each automobile contains an average of $3,297 worth of chemicals, such as acrylonitrile-butadiene-styrene (ABS), nylon, polycarbonate (PC) and others.

($1 = €0.77)

By: Mark Yost
+1 713 525 2653

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