BMW to Raise Dividend After 2017 Profit Rises
By Sarah Sloat
German car maker BMW AG (BMW.XE) said on Thursday it would raise its 2017 dividend after earnings grew strongly in 2017, in part boosted by the effect of tax reform in the U.S.
After-tax profits rose 26% to 8.7 billion euros ($10.8 billion), while revenue was up 4.8% at EUR98.7 billion, BMW said. The luxury car maker plans to raise its dividend on common stock to EUR4 per share from EUR3.50 a year earlier, and to EUR4.02 on preferred shares from EUR3.52.
In December, BMW had said U.S. tax reform would have positive effect on deferred taxes. On Thursday, it said its income tax expense fell to EUR1.95 billion in 2017 from EUR2.8 billion in 2016.
The key margin in the company's automotive segment remained unchanged at 8.9%.
The rise in profit also comes despite continuing heavy investments in electrification and technology at BMW, which it expects to further increase this year.
The company expects to increase car deliveries in 2018, but also expects "the political and economic environment to remain volatile," it said.
Write to Sarah Sloat at firstname.lastname@example.org
(END) Dow Jones Newswires
March 08, 2018 08:09 ET (13:09 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.