Intel investment a boost for BMW

German luxury car maker BMW reported a betterthan-expected 27% jump in quarterly pretax profit after an investment by chip maker Intel drove up the value of its stake in mapping service Here.

German luxury car maker BMW reported a better-than-expected 27% jump in quarterly pretax profit after an investment by chip maker Intel drove up the value of its stake in mapping service Here.

BMW also cited other positive valuation effects and improved profits from its Chinese joint venture, BMW Brilliance Automotive, as a boost to profits, which it announced ahead of schedule on Thursday, saying the results were ahead of expectations.

The company’s pretax profit came to €3.01bn in the first quarter to March, well above analyst forecasts of €2.38bn and €2.25bn after taking account of the one-offs.

BMW said the value of its stake in Here had risen by €183m in connection with the participation of new investors. Its other financial results had increased €122m.

US chip giant Intel said in January it was buying 15% of Here, which is co-owned by Daimler and Volkswagen.

BMW affirmed its guidance for a slight increase in full-year group pretax profit and an operating margin of 8%-10% at its car business, which posted a first-quarter margin of 9%, down from 9.4% a year earlier.

Shares in BMW jumped briefly on the news before easing back to trade 0.4% lower at €83.75 in morning trade. against a flat German blue-chip DAX index.

BMW’s sales rose 12% in the quarter to €23.5bn, above the average analyst forecast of €22.1bn, according to Thomson Reuters estimates.

The luxury car maker is due to publish detailed first-quarter results on May 4.