The new 5 series boosted BMW profit
BMW reported a 7.5 percent increase in second-quarter earnings as sales of its new 5 series helped to offset slowing demand for luxury cars in the U.S.
Khodrocar Reports, Earnings before interest and taxes rose to 2.93 billion euros ($3.47 billion) from 2.73 billion euros a year earlier, the company said Thursday in a statement.
BMW affirmed its guidance for a slight increase in full-year pretax profit and an operating margin of 8 percent to 10 percent at its automotive business, which posted a second-quarter margin of 9.7 percent, up from 9.5 percent a year earlier.
Deliveries of BMW, Mini and Rolls-Royce vehicles rose 4.6 percent to 633,582 cars in the second quarter.
BMW forecast a "solid" increase in automotive segment revenue for the full year, predicting "additional momentum" in sales in the second half as the new 5 series is launched in China.
Analysts welcomed BMW's revised outlook for car sales, and the fact that the BMW remains the only German premium brand that is not being investigated for using illegal software to cheat emissions tests.
"We confirm our positive view on BMW especially as BMW seems to be less involved in the ongoing emission discussions," DZ Bank analyst Michael Punzet said in a note on Thursday.
"This solid result shows that BMW, despite the diesel discussion, is well on track operationally," said Marc-Rene Tonn, a Hamburg-based analyst at Warburg Research. "They are doing their homework and are coming up with strong models."
Higher spending
BMW CEO Harald Krueger flagged higher spending during the remainder of the year as the automaker invests in new models and derivatives, and in electric mobility and self-driving cars.
Investments will continue rising in connection with "key technological and strategic projects on the one hand and the rollout of the largest model offensive in the history of the BMW group on the other," Krueger said.
The company plans to introduce 40 new or overhauled autos through 2020, focusing on lucrative top-end vehicles like the new 8-series sedan and next year’s full-size X7 SUV.
German prosecutors are investigating Daimler, Audi, Porsche and Volkswagen to see whether they used illegal software designed to cheat emissions tests. BMW has said it uses different exhaust treatment technologies than other automakers.
Source: Reuters, Bloomberg
Source: Reuters, Bloomberg
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