BMW Pretax Q1 Profit Jumps 27% on Higher Group Revenue, 'Valuation Effects'

By William Wilkes Features Dow Jones Newswires

Luxury car maker BMW AG (BMW.XE) said Thursday that pretax profit in the first three months of the year rose nearly 27%, significantly beating market expectations.

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BMW's earnings before interest and taxes jumped to 3.01 billion euros ($3.24 billion) in the three-month period ending March 31st, from EUR2.37 billion a year earlier. The better-than-expected result was due to "valuation effects," the car maker said.

Group revenue rose 12% to EUR23.45 billion from EUR20.85 billion a year ago, BMW said. Overall, the pretax profit margin in BMW's core automotive business slipped to 9% from 9.4% a year ago.

BMW kept its 2017 guidance unchanged, saying it expects a slight increase in profit this year, with an EBIT margin of between 8% and 10% in its core automotive operations. BMW will publish full results on May 4.

Write to William Wilkes at william.wilkes@wsj.com

(END) Dow Jones Newswires

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April 20, 2017 06:52 ET (10:52 GMT)