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BMW first quarter profit down 17%, Daimler's drop 32%

BMW first quarter profit down 17%, Daimler's drop 32%

James Martinez April 29th, 2008 James Martinez By James Martinez Author April 29th, 2008
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December 31st, 1969 Profit levels for most of the major carmakers were down this quarter, with many including BMW and Daimler seeing their profits fall by double digit figures. BMW announced today that its first-quarter profit fell 17% to $761 million, while Daimler’s profits dropped by a hefty 32 points to end up at $2.03 billion. BMW has blamed its poor performance on a one-time charge taken to protect it from lower used-car prices and the risk of defaults on loans for leased cars in the U.S., which amounted to $369 million. Daimler, meanwhile, said its profit levels last year were artificially inflated by a one-time gain from the sale of shares and retail property and that this year’s figure was more in line with the carmaker’s true profit levels, reports Reuters. Both saw sales rise this quarter, with BMW selling 11% more vehicles than one year ago and Daimler’s sales figures up 17%. Low demand caused in the U.S. and weakening economies both in the U.S. and Europe were also cited as reasons for the profit slumps.
BMW first quarter profit down 17%, Daimler's drop 32%

BMW first quarter profit down 17%, Daimler's drop 32%

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Profit levels for most of the major carmakers were down this quarter, with many including BMW and Daimler seeing their profits fall by double digit figures. BMW announced today that its first-quarter profit fell 17% to $761 million, while Daimler’s profits dropped by a hefty 32 points to end up at $2.03 billion.

BMW has blamed its poor performance on a one-time charge taken to protect it from lower used-car prices and the risk of defaults on loans for leased cars in the U.S., which amounted to $369 million. Daimler, meanwhile, said its profit levels last year were artificially inflated by a one-time gain from the sale of shares and retail property and that this year’s figure was more in line with the carmaker’s true profit levels, reports Reuters.

Both saw sales rise this quarter, with BMW selling 11% more vehicles than one year ago and Daimler’s sales figures up 17%.

Low demand caused in the U.S. and weakening economies both in the U.S. and Europe were also cited as reasons for the profit slumps.

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Posted in: BMW, Mercedes Benz, News


Comments (3 total)

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  1. By chris #1, Posted: 4/29/2008

    BMW makes 2 billion in a quarter and they've promised investment in how many billions of dollars for hydrogen drive? seems like a lot of money to devote to a very distant technology.

    If they're pushing more cars and making less money,.. well that right there is a true gauge of how weak the global economy is right now. and apparently it's set to get worse.2

  2. By HECTOR #2, Posted: 4/29/2008

    Anyone thinks that the $45-$50K price tag on the chick / metrosexual car called the 135 has anything to do with this loss?

  3. ma_Phil W avatar by Phil W #3, Posted: 5/6/2009

    bmw's loss is down to $761 Million Profit for the fist quarter. come on people , buy more cars. These people are struggling to make ends meet .

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