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BMW Profits Climb 11%
BMW AG’s net profit in the second quarter of 2016 grew to €1.9 billion ($2.1 billion) from €1.7 billion in the same period last year.
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BMW AG’s net profit in the second quarter of 2016 grew to €1.9 billion ($2.1 billion) from €1.7 billion in the same period last year.
Group sales expanded 6% to 605,500 units, including 507,800 BMW-brand cars and crossover vehicles. Revenue rose 5% to €25 billion ($28.1 billion). Profit before interest and taxes jumped 8% to €2.7 billion ($3.1 billion).
Second-quarter growth was led by strong demand for BMW's flagship 7 Series sedans and small X1 and X3 crossovers. The company’s larger X5 and X6 crossovers led their segments in sales.
BMW predicts the global auto market will expand 2.3% this year, driven mainly by growth in China and Europe. The company expects the overall U.S. market will grow only 0.2% this year to 17.5 million units.
Citing “fierce” competition this year, the group anticipates only a slight improvement this year in its pretax profit compared with last year’s €9.2 billion. BMW predicts its unit sales and revenue will slightly surpass last year’s records of 2.25 million units and €85.5 billion respectively.
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