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BMW Operating Profit Pared by Higher Technology Spending
BMW AG netted €1.4 billion in the second quarter of 2013 compared with €1.3 billion a year earlier.
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BMW AG netted €1.4 billion in the second quarter of 2013 compared with €1.3 billion a year earlier. Revenue rose 2% to €19.6 billion.
Earnings before interest and taxes slid 9% to €2.1 billion in the April-June period this year. The company attributes that decline to weak car markets in Europe, a 5% increase in its workforce and heavy spending on new technologies, vehicles and factories.
Group EBIT as a percentage of sales shrank to 10.6% from 11.8% in the second quarter of 2012. BMW expects that margin to range between 8% and 10% for the full year. EBIT for BMW's auto unit dropped 13% to €1.8 billion despite a 5% increase in revenue to €18.2 billion.
Group vehicle worldwide sales climbed 7% to a record 506,300 units.
The BMW brand hiked global sales 8% to 422,800 vehicles in the latest quarter, remaining ahead of rival Mercedes-Benz by nearly 24,000 units. Deliveries fell 2% to 82,600 vehicles at Mini and were flat at 833 cars at Rolls-Royce.
The company confirms its prediction that full-year pretax profit will match 2012 levels. Pretax income was unchanged at €4 billion in the first six months of 2013, thus implying flat earnings in the second half.
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