BMW STILL CAU­TIOUS DE­SPITE RISE IN PROFIT

Ger­man car­maker sticks to full year fore­cast, as it spends on new mod­els, re­search and devel­op­ment

New Straits Times - - Business -

GER­MAN car­maker BMW yes­ter­day re­ported a leap in prof­its in the sec­ond quar­ter, but stuck to its fore­cast for the full year as it spends on new mod­els and re­search and devel­op­ment.

Net profit at the group reached €2.2 bil­lion (RM11.13 bil­lion) be­tween April and June, a 13.6 per cent in­crease com­pared with the same pe­riod last year.

Op­er­at­ing, or un­der­ly­ing profit grew 7.5 per cent to reach €2.9 bil­lion, on the back of rev­enues ris­ing 3.1 per cent to €25.8 bil­lion.

The group pointed to some 40 new mod­els from its high-end car brands BMW, Mini and Rolls Royce sched­uled for re­lease this year and next year, an “of­fen­sive” that it hopes will boost unit sales, es­pe­cially in the United States.

BMW was over­taken by his­toric ri­val Daim­ler’s Mercedes-Benz last year as the big­gest-sell­ing lux­ury car­maker.

The group also high­lighted its sales of elec­tric ve­hi­cles, which reached 42,573 in the first six months. It aims to sell more than 100,000 units over the full year for the first time.

Ger­man car­mak­ers are un­der pres­sure from the gov­ern­ment over high lev­els of harm­ful emis­sions from diesel ve­hi­cles, as a long-run­ning scan­dal over cheat­ing on reg­u­la­tory emis­sions tests has deep­ened.

BMW has of­fered to re­fit hun­dreds of thou­sands of diesel cars al­ready on Ger­man roads with a soft­ware up­date to re­duce their emis­sions of ni­tro­gen ox­ides, un­der a sec­tor-wide deal be­tween the gov­ern­ment and car­mak­ers agreed on Wed­nes­day.

The Mu­nich-based firm will also of­fer dis­counts for own­ers of old diesels who trade them in for new ones.

Look­ing ahead to the full year, BMW ex­pects a “slight in­creases” in unit sales and pre-tax prof­its, as well as a “solid in­crease” in rev­enues from its car busi­ness de­spite a “volatile” po­lit­i­cal en­vi­ron­ment world­wide. AFP

BLOOMBERG PIC

BMW has some 40 new mod­els from its high-end car brands sched­uled for re­lease over the next two years in an ‘of­fen­sive’ it hopes will boost unit sales.

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