BMW announces second quarter earnings slide of 3 percent image

BMW, the largest premium automaker in the world, has recently released its second quarter operating profit, which is down three percent to 2.53 billion euros ($2.77 billion) from the same period last year.

For the biggest luxury automaker, the surging turnaround seen at home across the European region has not been potent enough to offset the issues brought by the recent Chinese delivery slide. According to a statement from the company, revenue did jump 20 percent to 23.9 billion euros, but the automotive unit’s earnings went down 3.4 percent to 3.61 billion euros. BMW’s “minor dip” was caused, according to the company, by increased personnel expenses, higher expenditure on new product start-ups and a growing proportion of deliveries of lower-yield compact models. The company went on to forecast it would reach new records for both annual sales and pretax profit even as the earnings momentum is negative. BMW also announced its worldwide group vehicle sales, consisting of the BMW, Mini and Rolls-Royce brands jumped 7.5 percent for the quarter, posting an all-time record for the period of 573,079 autos.

The company’s earnings margin took a massive dive across its automotive division to 8.4 percent, while during the same period last year it was at 11.7 percent – and it also slid below the ones reported by its close following rivals: Audi AG and Mercedes-Benz Cars, at 9.9 percent and 10.7 percent respectively. The quarterly announcement is also the first one for the company’s new chief financial officer Harald Krueger, 49, who took over from Norbert Reithofer in May.

Via Automotive News Europe