By Sarah Sloat 
 

BMW AG (BMW.XE) said Wednesday that it expects earnings to fall in 2019 due in part to increasing investments and costs related to stricter regulation.

Net profit will be "well below" last year's, the company said. Its key earnings margin--the margin on earnings before interest and taxes in its automotive division--would be between 6% and 8% this year, though the long-term ambition remains 8%-10%, BMW said.

Behind the expected decline in 2019 earnings are rising manufacturing costs, unfavorable currency factors and higher raw materials prices, BMW said, which also cited the uncertainty caused by "the ongoing issue of international trade conflicts."

As previously reported, BMW's net profit in 2018 fell by about 17% to EUR7.2 billion.

The company, which is rolling out new models, said the second half of 2019 would develop more strongly than the first.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

March 20, 2019 05:48 ET (09:48 GMT)