German carmaker BMW AG said net profit in the first quarter by 133% due to the absence of one-time allocations to reserves, recorded a year earlier, but reported that coronarita is likely to hit the demand and profits in the current year.
BMW Profit before interest and taxes rose to EUR 1.38 billion, compared with 589 million euros in the same period a year earlier (APPG) when the results weighed one-time allocation to reserves of 1.4 billion euros.
Margin EBIT automotive division rose to 1.3% becoming positive after minus 1.6% a year earlier.
BMW has predicted a drop in annual EBIT margin of the automotive business to 0-3% in comparison with the range of 2-4%, the expected to a sharp drop in demand due to the coronavirus.
"the BMW Group continues to expect that the spread of coronavirus and the necessary containment measures would seriously weaken demand in all major markets throughout 2020," - said the automaker.
deliveries of BMW cars fell by 20.6% to 477 111 vehicles during the quarter due to the effect of coronavirus.
