BMW Books Earnings Gain in 2Q Due Development in EU Antitrust Proceedings
May 20 2021 - 1:38PM
Dow Jones News
By Kim Richters
BMW AG said Thursday that progress in E.U. antitrust proceedings
is leading to the partial release of related provisions, resulting
in a positive effect on earnings of 1 billion euros ($1.22 billion)
in the second quarter.
The company said these proceedings are looking into whether
carmakers in Germany have cooperated in technical working groups to
limit competition for the development and rollout of
emission-reduction technologies. "The legal conformity of diesel
vehicles is not subject of the proceedings," said the car
maker.
It has booked a total provision of EUR1.4 billion in April 2019
related to this case.
"Based on the new information, BMW AG continues to consider it
more likely than not that the EU Commission will issue a fine to
BMW AG. However, the significant limitation in the scope of the
allegations has led to a revaluation of the provision," it
said.
The provision release hasn't been included in the current
outlook for the year and will lead to an increase in the margin for
earnings before interest and taxes for its automotive segment of
around 1 percentage point, BMW said, adding that it will adjust the
forecast range. Profit before taxes for the group should still see
a significant increase this year as previously expected.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
May 20, 2021 13:23 ET (17:23 GMT)
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