BMW’s Quarterly Earnings Dip

BMW AG reports its revenue in the second quarter of 2015 climbed 20% to €23.9 billion, helped by favorable exchange rates and an 8% increase in vehicle sales to a record 573,100 units.

But April-June earnings before interest and taxes declined 3% to €2.5 billion, and net profit slipped 1% to €1.7 billion.

The company says results were hurt by the short-term effects of a less favorable sales mix, higher spending on new-product launches, greater personnel costs and a slowdown in China that offset sales increases in Europe and the U.S.

The group's automotive operations hiked revenue 17% to €21.7 billion. BMW brand sales expanded 5% to a record 480,500 units. But EBIT plunged 16% to €1.8 billion, eroded by "ever-fiercer" competition and a sales swing to lower-margin compact vehicles.

Group vehicle sales in January-June rose 10% to 488,500 units in Europe, 4% to 337,100 units in Asia and 10% to 242,400 in the Americas.

BMW affirms its full-year guidance for record sales, revenue and pre-tax earnings, aided by the introduction of 15 new or updated models by the end of 2015.