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Frankfurt — German car maker BMW, on Wednesday, reported a 27% drop in third-quarter operating profit to €1.75bn, missing analyst expectations amid currency headwinds and higher research and development expenses. Analysts in a Reuters poll had, on average, expected earnings before interest and taxes (ebit) to come to €1.795bn. BMW shares fell 2.6% in early Frankfurt trade. BMW said that despite a slight rise in deliveries of luxury cars, its operating return on sales for the automotive division narrowed to 4.4% from 8.6% a year earlier, well below its targeted range of 8% to 10%. Earnings were hit by higher raw material prices, currency effects, higher provisions for goodwill and warranty measures, tariffs between China and the US, and a price war in Europe, the company said. BMW made provisions of €679m for vehicle recalls in the third quarter. To secure enough raw materials for batteries, BMW said it will purchase specific raw materials, such as cobalt, then make them available to...

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