BMW reduces benefits in terms of regulation and trade

BMW AG (BMW.XE) said on Tuesday it has reduced its forecast for 2018, citing the effects of new regulations on testing in Europe, rising goodwill and trade tensions.

The German automaker now expects the group's pre-tax profits to show a "moderate decline" from 2017. Previously, it expected this figure to be comparable to that of the company. 39, last year.

It has reduced expectations in terms of revenue and operating margin in its automotive segment. It now provides for a car margin of at least 7%, up from 8% to 10% previously.

The company attributed the change to goodwill, trade tensions and the impact of new regulations on emissions testing, called WLTP.

"The shift to the scale of the sector in the new WLTP test cycle, however, has led to significant distortions of supply in several European markets and intense and unexpected competition," said BMW. The luxury car maker said that it was reacting to increased competition and that it was reducing its volume planning "to focus on the quality of the results".

At 11:29 GMT, BMW shares fell 3.7% to 80.40 EUR.