BMW Earnings Slump 25% in Q1 Despite Beating Market Estimates

BERLIN, May 6 (Reuters) - BMW's pre-tax earnings slumped by 25% in the first quarter of the year and its core operating margin narrowed, but the German premium carmaker still beat estimates as it faces tariff costs and a difficult market in China. BMW said on Wednesday its pre-tax earnings came in at 2.3 billion euros ($2.70 billion) in the first quarter, compared with analysts' forecast of 2.2 billion euros in a company-provided consensus. Group revenue fell by 8.1% to 31.0 billion euros. The EBIT margin in the carmaker's core automotive business stood at 5.0% in the first three months of the year, beating analysts' forecast of 4.7%. Pre‐tax earnings slumped 25% year‐on‐year but beat the €2.2 billion analyst consensus with €2.3 billion. Group revenue dropped 8.1% to €31 billion in Q1, pressured by tariff costs and weak demand in China. Automotive segment core EBIT margin narrowed to 5.0%, yet exceeded the 4.7% forecast despite headwinds.