BMW third-quarter

FRANKFURT (Reuters) – German carmaker BMW (BMWG.DE) On Wednesday reported a 27 percent drop in third quarter operating profit to 1.75 billion euros ($ 2 trillion), with a negative growth rate of $ 1.75 trillion.

Analysts in a Reuters poll had on average earnings before interest and taxes (EBIT) to come to 1.795 billion euros.

BMW shares (BMWG.F) 2.6 percent in early Frankfurt trade.

BMW said that despite its performance, it is expected to grow at a rate of 4.4 percent to 8.6 percent, and 8 percent to 10 percent.

Earnings have been hit by higher prices, currency effects, higher rates for goodwill and warranty measures, tariffs between China and the United States and a price war in Europe, the carmaker said.

BMW made provisions of 679 million euros for vehicle recalls in the third quarter.

In order to secure sufficient raw materials for batteries, BMW, et al.

BMW is establishing a technology consortium with Northvolt and Belgium's Umicore (UMI.BRto develop a value chain for battery cells in Europe, including development, production and near recycling.

Last month BMW warned its pretax profit would fall this year, against expectations for a flat outcome, and cut its profit margin, for blaming intense price competition.

"Compared with 2017, additional upfront spending of around 1 trillion euros for the mobility of the future and a high three-digit million euro negative impact of exchange-rate and raw materials," BMW said.

BMW had less problems than Volkswagen rivals (VOWG_p.DEDaimler DIAGn.DE in terms of selling cars that conform to the new Worldwide Harmonized Light Vehicle Standard Test (WLTP), but the onset of the rules of distortion and heavy discounting in some markets.

($ 1 = 0.8747 euros)