BMW posts flat profit as investments erode margins

BMW posted flat third-quarter operating profit on Friday as investments in new technologies and hiring staff ate into profits from sales of its premium cars.

Despite a 7.1% rise in sales for BMW, Rolls-Royce and Mini-branded cars, the return on sales at BMW's automotive division fell to 8.5% from 9.1% a year earlier.

BMW said the dip in profits was mainly attributable to higher personnel expenses as group staff increased by 3.6%, and due to changes in the model and regional sales mix for cars.

BMW said sales conditions in the United States, a market where sales of highly profitable sports utility vehicles has been strong, had become "volatile" in the third quarter, leading sales in the Americas to slump 3.6%.

BMW said third-quarter earnings before interest and taxes (EBIT) were 2.38 billion euros ($2.64 billion), in line with the 2.37 billion-euro consensus estimate in a Reuters poll.

Shares in BMW were indicated down 0.4% ahead of the Frankfurt market open.