BMW shares rose on the back of a 25 drop in profits%

BMW Group's pre-tax profit in the first quarter of this year decreased by 25% and amounted to €2.35 billion, the German manufacturer's press service reported on May 6.

At the same time, according to Reuters, after the publication of quarterly results, BMW shares increased in price by 5.6%. This dynamic is explained by the fact that the company's results in the first quarter exceeded key analyst forecasts (profit was expected at 2.2 billion euros), and this pleased investors. At the same time, BMW maintained its financial forecast for 2026, despite statements by US President Donald Trump about an increase in duties on car imports from the European Union from 15% to 25%.

The group's total revenue amounted to €31 billion, a decrease of 8.1%. These results highlight the continued fierce competition in the Chinese market and also reflect a slight decline in sales, BMW said. Unfavorable currency fluctuations, primarily of the yuan and the dollar, also had a negative impact, the company noted.

The BMW Group report also says that the company has reached a record number of orders in one quarter in the European region. From January to March, orders for the company's all-electric vehicles in Europe increased by more than 60% compared to the previous year.

In the first quarter, the BMW Group supplied a total of 565.8 thousand vehicles to customers worldwide (-3.5% YoY), of which 496 thousand vehicles were from the BMW brand (-4.6%). MINI sales increased by 6%, and Rolls-Royce delivered 8% fewer cars to customers than in the same period a year earlier (both brands are part of the BMW group).

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Kirill Dmitriev, Special Representative of the President of the Russian Federation for Investment and Economic cooperation with Foreign countries, head of the Russian Direct Investment Fund (RDIF), said on May 1 that the introduction of US duties of 25% on imports of cars and trucks from the European Union (EU) could be a "fatal blow" to the European economy amid the ongoing energy crisis.