FRANKFURT, Germany (AP) - BMW's profits this year will at least equal last year's results as the automaker sinks billions into developing electric and autonomous car technology to meet expected changes in how people get from one place to another, the company said Wednesday.
Chief Financial Officer Nicolas Peter told an annual news conference Wednesday that it expects group profit before tax to be "at least in line" with 2017's record $13.1 billion, which was up 10 percent.
Peter said the company would allocate "an increasing amount" to research and development after spending $7.5 billion in 2017, an increase of a billion euros. He said BMW remained financially strong, enabling a record dividend of about $5 per share.
BMW made $10.7 billion net profit last year, up 26 percent. Last year's result was boosted by $12 million through the positive impact of changes in U.S. tax law enacted near the end of the year. Revenues rose 4.8 percent to a record $121.8 billion.
Auto companies are spending heavily to develop battery-powered cars in order to meet tough measures against global warming and air pollution. They are in a race with cash-rich tech companies such as Waymo and Uber to develop autonomous vehicles, although that technology remains in the testing stage, as underlined by a fatal crash Sunday in Arizona involving an autonomous Uber test vehicle.
Companies are also developing digital transportation services involving the use of vehicles for short periods of time when people need them. Together, those technologies could lead to a form of driverless taxis.
BMW recently bought out partner Sixt to take full control of its DriveNow car-sharing company, giving it more flexibility to develop the business going forward.
BMW executives fielded several questions about the potential impact of new tariffs on imported steel and aluminum announced by President Donald Trump. The tariffs have raised the possibility the European Union and others might retaliate, expanding the trade dispute to other categories of goods and reducing trade.