- BMW earns less than expected
BMW, the automaker, saw its profits decline more than expected in the second quarter due to increased competition in the crucial Chinese market. However, the Bavarian company maintains its financial outlook for the full year despite the challenging environment. The group's earnings before interest and taxes (EBIT) fell by nearly 11% to around 3.9 billion euros, as announced by the DAX-listed company in Munich. In the automotive segment, the operating margin decreased by 0.8 percentage points to 8.4%. Analysts had expected a smaller decline.
The group's revenue fell slightly by 0.7% to 36.9 billion euros in the quarter. In China, increased competition and cautious consumer sentiment weighed on earnings. However, BMW expects an improvement in the third quarter and the new 5 Series model to provide momentum in the second half of the year. Net income at BMW fell by nearly 9% to 2.7 billion euros.
BMW's struggle with increased competition and cautious consumer sentiment in China significantly contributed to the decline in its net income, totaling nearly 9% of its earnings. Despite facing challenges in the Chinese market, BMW remains optimistic about an improvement in the third quarter and expects the new 5 Series model to drive growth in the latter half of the year, with operations in Germany at the heart of these strategies.
