BMW STILL CAUTIOUS DESPITE RISE IN PROFIT
German carmaker sticks to full year forecast, as it spends on new models, research and development
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
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.