The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
BMW AG’s profit fell 20 percent in the second quarter as the company accelerates a rollout of electric vehicles.
In Chief Executive Officer Harald Krueger’s final quarter, earnings before interest and taxes declined to 2.2 billion euros ($2.4 billion) from 2.74 billion euros a year earlier. Analysts had expected 2.19 billion euros.
After a loss in the first quarter, BMW’s car unit bounced back with a profit to give credence to the company’s expectations for a stronger second half of the year. The auto margin was 6.5 percent, compared with 8.6 percent a year earlier.
Though the company’s car sales have outpaced rivals in the first half, profit was weighed down by a legal provision, aggressive pricing amid soft demand and spending on new technology.