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BMW keeps 2005 outlook but reported a sharper -than-expected drop in third -quarter pretax profit on Thursday . Poor results in its core auto business and a loss relating to a bond - exchangeable into Rolls-Royce shares pushed pretax profit down to 647 million Euros from 779 million euros a year earlier, well short of an average estimate of 739 million in a Reuters poll of 23 analysts. The company confirmed its full-year target of generating "approximately the high earning level of 2004", when BMW posted 3.55 billion Euros in pretax profit. Shares in BMW opened nearly 2% lower following the weak set of results, but turned around to gain 0.77% to 36.33% euros. The DJ Stoxx European automotive index rose 0.1%. According to a statement form Chief Executive Helmut Panke,"Currency factors, high raw material prices and intense competition are all having an adverse impact." BMWs quarterly automotive pretax profits fell 7.9% despite a 13.5% rise in revenues to 11.7 billion. The market forecast a profit of 708 billion.
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| Posted : 11/5/2005 |
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