German carmaker BMW has fallen short of analysts' expectations as massive spending on future technologies has weighed on quarterly earnings. The company said it would not deviate from its long-term strategy.
The Munich-based automaker reported Tuesday its net earnings shrank by 1.8 percent in the third quarter year on year to €1.8 billion ($2.1 billion), well short of investors' expectations.
Between July and September, operating or underlying profit also fell by 3.2 percent, while revenues were up 0.3 percent at €23.4 billion.
The quarterly results that were disappointing to many came as the BMW Group was "investing substantially in tomorrow's mobility," as CEO Harald Krüger put it.
He highlighted the company's €400-million investment in the expansion of BMW's research center and the opening of an autonomous driving center with partners including chipmaker Intel.
Shareholders not amused
The carmaker's share price dipped on the results, temporarily being the worst-performing stock on the German blue-chip index, the DAX-30.
Krüger appeared unfazed by the news, saying that the company's top priority was "its long-term prospects and strategy."
Unit sales of BMW, Mini and Rolls-Royce cars increased by 1.2 percent in the third quarter, driven by the success of the new BMW 5 series and brisk demand for the popular X1 compact SUV.
hg/mm (AFP, dpa)