The competition in China is causing problems for the German car manufacturer: BMW is weakening in the second quarter. According to the Munich-based company, things should soon be looking up.
The car manufacturer BMW earned less than expected in the second quarter due to increased competition in the important Chinese market. Despite this difficult environment, the Bavarian company is sticking to its financial outlook for the full year. The group’s earnings before interest and taxes fell by almost 11 percent to just under 3.9 billion euros, as the DAX group announced in Munich. In car manufacturing, the operating margin fell by 0.8 percentage points to 8.4 percent. Analysts had expected a smaller decline on average.
Group sales fell slightly by 0.7 percent to 36.9 billion euros in the quarter. In China in particular, increased competition and cautious consumer sentiment had a negative impact on revenues, it was said. However, BMW is expecting an improvement in this area as early as the third quarter, and the new 5 Series model is also expected to provide momentum in the second half of the year. The bottom line is that BMW’s profit fell by almost 9 percent to 2.7 billion euros.
Source: Stern
