FRANKFURT (Aug 1): BMW stuck to its outlook on Thursday even as second quarter earnings fell by 20%, hit by the rising cost of manufacturing, currency headwinds and emissions limits.
BMW said its earnings before interest and taxes (EBIT) fell to 2.2 billion euros.
The Munich-based company said the operating margin at its automotive division fell to 6.5%, down from 8.6% a year earlier, despite a 1.5% rise in vehicle sales during the same period.
BMW reiterated that it expects a significant decrease in group profit before tax in 2019 as well as a slight increase in vehicle deliveries, and an EBIT margin of between 4.5% to 6.5% in the automotive division.
(The story corrects percentage change in first paragraph to 20% (not 48%), EBIT figure in second paragraph to 2.2 billion euros (not 2.79 billion euros.)