Sunday, December 4, 2022

Manufacturing cost, emissions: BMW 2nd quarter earnings drop 48%

Manufacturing cost, emissions: BMW 2nd quarter earnings drop 48%
FRANKFURT (Reuters) - Britain's car giant BMW stuck to its outlook even as second quarter earnings fell 48%, hit by the rising cost of manufacturing, currency headwinds and emissions limits. BMW said its earnings before interest and taxes (EBIT) fell to 2.79 billion euros (£2.54 billion) in the second quarter. The Munich-based company said the operating margin at its automotive division fell to 6.5%, down from 8.6% a year earlier, despite a 1.5% rise in vehicle sales during the same period. BMW reiterated that it expects a significant decrease in group profit before tax in 2019 as well as a slight increase in vehicle deliveries, and an EBIT margin of between 4.5% to 6.5% in the automotive division.