Drop in BMW earnings less than feared

FRANKFURT: BMW reported yesterday an 18% decline in pre-tax profit for the first quarter, weighed down by the cost of the biggest new model programme in its history. The result came as a relief, however, to investors who had feared a sharper fall. 

The German carmaker said lower sales of its core luxury brand combined with new model costs knocked its first quarter pre-tax profit down to 830 million euros (US$943mil), while net income fell 19% to 510 million euros.