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BMW’s Profit Drops 6%
BMW AG reports a gain in car sales but declines in revenue and net profit for the second quarter of 2018.
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BMW AG reports a gain in car sales but declines in revenue and net profit for the second quarter of 2018.
Retail car sales for the period rose 1% to 637,900 units worldwide. But currency exchange factors trimmed group revenue by 3% to €25 billion ($29 billion), as a 5% decline in motorcycle sales offset flat revenue for automotive operations.
The group’s net profit dropped 6% to €2.1 billion ($2.4 billion) for April-June. Pretax earnings fell 6% overall but plunged 14% to €2.1 billion for automotive. The company sites “extremely high” spending on electrification and other technologies.
BMW affirms its previous guidance for full-year results: a slight gain in unit sales and revenue that will set new highs in 2018 with flat pretax profits.
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