BMW profits dip on clean tech costs
The Munich-based group reported net profit of €2.1b from April to June
German high-end carmaker BMW yesterday reported a dip in quarterly profits after ramping up spending on electric and self-driving cars.
But the group confirmed its full-year outlook, saying its focus on future technology would help see it through “challenging times” as global trade tensions mount.
The Munich-based group reported net profit of €2.1 billion ($2.4 billion, Dh8.81 billion) from April to June, down 6.1 per cent year-on-year but slightly better than analysts predicted.
Revenue at the group, which also makes the compact Mini and luxury Rolls-Royce, dipped nearly three per cent to €25 billion despite record deliveries of nearly 638,000 cars in the third quarter.
BMW said earnings were braked by negative currency effects and higher raw materials prices. But a 14 per cent spike in spending on research and development, to €2.6 billon, was the main drag on the bottomline as the company joins other carmakers in pivoting towards cleaner, smarter cars.
Chief executive Harald Krueger said BMW was focusing on meeting “the demands of tomorrow” as the industry goes through “challenging times”.
“The BMW Group has more than 100 years of experience in dealing with volatility in a changing world,” Krueger said.
“It is crucial that we remain focused on the key issues of profitability, growth and innovation to ensure our competitive edge going forward.”
Like other major carmakers, BMW is nervously eyeing an unfolding trade war between the United States and China, who have hit each other with tit-for-tat tariffs including on car imports.