BMW: Quarterly net profit rises 3.2%

Published Nov 6, 2013

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BMW

Quarterly net profit rises 3.2%

BMW’s net profit increased 3.2 percent in the third quarter despite difficult market conditions and spending on technology, the luxury car maker said yesterday. It earned e1.33 billion (R18bn) in the three months to September, up from e1.29bn a year earlier. Revenue at the group, which includes Mini and Rolls-Royce, declined 0.4 percent to e18.75bn, but car sales rose 10.7 percent to 481 657 vehicles. Earnings before interest and tax declined 3.7 percent. BMW pointed to spending on new technologies, personnel costs and growing competition. Chief executive Norbert Reithofer reaffirmed BMW’s full-year outlook, saying it expected sales volume to grow by a single-digit percentage amount and pre-tax profit to be similar to last year’s. – Sapa-AP

NISSAN

Stock falls 10% on profit alert

Nissan tumbled the most in almost five years in Tokyo trading after Japan’s second-biggest car maker lowered its profit forecast. The stock fell 10 percent to ¥861 (R88.62), the biggest decline since December 2008. Nissan had the largest drop in the Nikkei 225 stock average, which climbed 0.2 percent. At a time when the weaker yen is supposed to be bolstering Japanese exporters’ earnings, Nissan last week cut its full-year net income forecast by 15 percent after demand in emerging markets slowed and recall costs mounted. Analysts at Deutsche Bank, Goldman Sachs and Credit Suisse cut investment ratings on the stock. Nissan cited unfavourable emerging-market exchange rates in cutting its outlook. It said changes in government policies in countries such as Thailand and Brazil were reasons it had reduced its full-year global sales forecast to 5.2 million units, compared with an earlier forecast of 5.3 million. – Bloomberg

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