BMW AG will raise its earnings forecast for the year because it expects an antitrust fine from the European Union to be much smaller than anticipated two years ago, reported Bloomberg.
The automaker will get a roughly 1 billion-euro ($1.2 billion) boost to earnings this quarter from revaluing a provision for an EU fine over allegations that it colluded with its German peers to delay rolling out cleaner cars.
BMW expects the EU “will significantly reduce its allegations” against the company, according to a statement. The lesser-than-anticipated fine will allow the company to raise its margin forecast for auto earnings before interest and taxes by about 1 percentage point.
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