FRANKFURT, Germany (AP) — German luxury automaker BMW says its profits and sales will fall short of its forecasts this year because of fears over international trade conflicts and as new emissions tests affect the pricing of cars.
The Munich-based company said Tuesday that sales revenue in its automotive division would fall slightly compared with last year instead of increase, while earnings before tax would be moderately below last year’s figure instead of roughly in line.
A key earnings metric — operating profit margin — would fall short. BMW predicts 7 percent, below its target range of 8-10 percent.
The company said that new, tougher emissions tests in Europe have led to market and sales distortions, even though BMW has managed to implement the new standard ahead of time.
BMW shares dropped 6 percent.
