Shares in BMW slumped more than 3 per cent on Tuesday after higher investment costs resulted in the world’s leading luxury carmaker posting a slump in third quarter profit.
Earnings before interest and taxes (EBIT) dropped 3.7 per cent to 1.93 billion euros ($ 2.6 billion) in the three months to the end of September, compared with the same period last year, the Munich-based group said.
“Buyer hesitation in southern Europe seems to have extended to Central Europe,” he said.
Still, BMW said it enjoyed growth in China, Asia and the US.
Analysts had expected the carmaker, whose stable of brands include it’s core BMW margue as well as the compact urban Mini and the top-of-the range Rolls Royce, to post only 1.86 billion euros in the third quarter EBIT, meaning Tuesday’s figures did surpass expectations.
The group has been investing in new technologies such as electricity-powered vehicles to help it maintain its market lead.
BMW’s shares dropped 3.34 per cent to 80.80 euros in morning trading in Frankfurt.
Third-quarter revenue slipped 0.4 per cent to 18.8 billion euros, despite an 11 per cent rise in deliveries, BMW said.
The group also retained its 2013 forecast of pretax profit coming in at “a similar level” to last year.