BMW Posts Lower Earnings as Competition Hurts Sales

By Adria Calatayud

BMW reported a drop in earnings and revenue for the first quarter, saying fierce competition in key markets like China hurt prices and sales.

The German auto group is preparing for a leadership transition, with production head Milan Nedeljkovic set to replace longtime boss Oliver Zipse, at a time when the auto industry is grappling with challenges on multiple fronts due to tariffs, Chinese competition and a slower-than-expected shift to electric vehicles.

BMW--which also owns the Mini and Rolls-Royce brands--said Wednesday that intense competition across major auto markets, particularly in China, weighed on earnings by hitting pricing and sales volumes. Currency headwinds and raw-material prices also hurt results, it added.

The company said that after-tax profit for the quarter fell to 1.67 billion euros ($1.95 billion) from 2.17 billion euros for the same period last year.

Earnings before interest and taxes fell 36% to 2.00 billion euros. Analysts had forecast group EBIT at 2.26 billion euros, according to consensus estimates provided by the company.

Revenue dropped 8.1% to 31.01 billion euros, compared with analysts' expectations of 32.24 billion euros. BMW last month reported a decline in quarterly vehicle sales due to weakness in the U.S. and China.

The company reiterated its full-year guidance.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

05-06-26 0158ET