gunksny
03-12-2009, 04:59 AM
BMW Has Fourth-Quarter Ebit Loss on Debt Provisions, Job Cuts
2009-03-12 10:32:28.638 GMT
By Tom Lavell.
March 12 (Bloomberg) -- Bayerische Motor Werke AG, the
world’s biggest luxury carmaker, said it had a fourth-quarter
loss before interest and taxes after setting aside money for
slower used-car sales and spending on job cuts.
The loss was 718 million euros ($917 million) compared with
earnings before interest and taxes of 1.31 billion euros, the
Munich-based carmaker said in an e-mailed statement. Full-year
net income dropped 89 percent to 330 million euros. Volkswagen
AG, Europe’s biggest carmaker, reported a 22 percent drop in
fourth-quarter profit today.
Industrywide car sales in Europe plunged 27 percent to the
lowest in two decades last month and contracted 37 percent to a
28-year low in the U.S. BMW took provisions throughout 2008 for
bad debt and declining values of vehicles returned on lease. The
charge in the fourth quarter amounted to 931 million euros,
almost half the 1.97 billion euros total for the year.
“We prepared ourselves early on and swiftly for severe
business conditions,” including taking steps to cut inventories
and scale back production, Chief Executive Officer Norbert
Reithofer said in the statement.
BMW fell as much as 2.69 euros, or 12 percent, to 20.25
euros and was down 7.3 percent as of 11:25 a.m. in Frankfurt
trading. The stock has fallen 2.1 percent this year, valuing the
carmaker at 13.4 billion euros.
2009-03-12 10:32:28.638 GMT
By Tom Lavell.
March 12 (Bloomberg) -- Bayerische Motor Werke AG, the
world’s biggest luxury carmaker, said it had a fourth-quarter
loss before interest and taxes after setting aside money for
slower used-car sales and spending on job cuts.
The loss was 718 million euros ($917 million) compared with
earnings before interest and taxes of 1.31 billion euros, the
Munich-based carmaker said in an e-mailed statement. Full-year
net income dropped 89 percent to 330 million euros. Volkswagen
AG, Europe’s biggest carmaker, reported a 22 percent drop in
fourth-quarter profit today.
Industrywide car sales in Europe plunged 27 percent to the
lowest in two decades last month and contracted 37 percent to a
28-year low in the U.S. BMW took provisions throughout 2008 for
bad debt and declining values of vehicles returned on lease. The
charge in the fourth quarter amounted to 931 million euros,
almost half the 1.97 billion euros total for the year.
“We prepared ourselves early on and swiftly for severe
business conditions,” including taking steps to cut inventories
and scale back production, Chief Executive Officer Norbert
Reithofer said in the statement.
BMW fell as much as 2.69 euros, or 12 percent, to 20.25
euros and was down 7.3 percent as of 11:25 a.m. in Frankfurt
trading. The stock has fallen 2.1 percent this year, valuing the
carmaker at 13.4 billion euros.
