Global slowdown hits BMW profits

Carmaker BMW has seen profits fall sharply and says it cannot provide a forecast for 2008 and beyond because of the uncertain economic climate.

The German firm said net profit fell 63% for the three months to September to 298m euros ($375.5m; £236.5m).

During the quarter, sales dropped 9% to 12.6bn euros, from 14bn euros in the same three month period a year earlier.

Carmakers worldwide have been hard hit with consumers cutting their spending amid the global economic slowdown.

"The knock-on effects of the international financial crisis and a downturn in the global economy had a significant negative impact on the performance of the automobile industry," BMW said.

"Ongoing consumer reticence on the main sales markets, the weak state of the preowned car markets together with difficult refinancing conditions also took their toll on the BMW group," it added.

BMW chief executive Norbert Reithofer said difficult business conditions and the turmoil on the markets meant that it was "as good as impossible from today's perspective to make a reliable prediction of the earnings outcome for 2008".

"We will, however, achieve a result that is clearly positive," he added.