German carmaker BMW disclosed Thursday it had suffered a blow from the financial crisis radiating out from the United States, but said it believed its provisions were adequate to cover the likely losses.
The Munich-based company said it had been caught out both by a slump in used-car prices and non-performing loans in the United States, the dpa reported.
The added cost to the first-quarter accounts was likely to be 236 million euros (370 million dollars).
BMW said the blow would not lead to any reduction in its overall profit forecast for the full year. It has said it aims to improve on last year's pre-tax net profit of 3.78 billion euros.
A spokesman said, "On the basis of what we know now, our provisions are adequate," but declined comment on whether the company might have to cut costs elsewhere to cope.
BMW is to have a telephone conference with financial analysts next Tuesday.
Used-car prices in North America, its biggest market, work through to BMW because the maker must sell the cars that are returned to it at the end of leasing contracts.