BMW’s Quarterly Net Profit Drops 29%

BMW AG’s second quarter saw gains in unit deliveries and revenue but sharp declines in pretax and net earnings.

Group revenue climbed 3% to €25.7 billion ($28.4 million) in April-June, thanks to a richer sales mix.

Unit sales rose 2% to 647,500 units, as a 24% jump to 181,900 units in China offset shrinkage in Europe (-4% to 279,500 units) and the Americas (-1% to 118,100).

Pretax earnings in the second quarter slid 28% to €2.1 billion ($2.3 billion), including a 23% drop to €1.5 billion for the company’s automotive operations. Group net profit plunged 29% to €1.5 billion ($1.7 billion).

Through the first half of 2019, the company’s unit sales climbed 1% to 1.25 million units, revenue advanced 1% to €47.7 billion ($52.7 billion).

But a €1.4 billion provision for the outcome of a continuing European Union antitrust investigation cut EBIT 49% to €5.4 billion ($6 billion). Group net profit in January-June plummeted 53% to €2.1 billion ($2.3 billion).

BMW expects further shrinkage in major auto markets worldwide through the remainder of 2019. The company anticipates a slight gain in its own unit sales that will produce another record-high volume. But it says its group EBIT will fall “significantly.”