BMW’s 5-series launch helps drive forecast-beating second quarter profit
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German luxury carmaker BMW posted a forecast-beating 7.5 percent rise in second-quarter profits as sales of its new 5-series helped to offset slowing demand for luxury cars in the United States.
Earnings before interest and tax (EBIT) rose to 2.92 billion euros ($3.46 billion), compared with an average forecast for 2.82 billion in a Reuters poll of banks and brokerages.
BMW affirmed its guidance for a slight increase in full-year group pretax profit and an operating margin of 8 to 10 percent at its automotive business, which posted a second-quarter margin of 9.7 percent, up from 9.5 percent a year earlier.
BMW said it now forecasts a solid increase in automotive segment revenues for the full year.
Questions & Answers
Q.What was BMW's second-quarter profit increase in percentage terms?
What was BMW's second-quarter profit increase in percentage terms?
BMW recorded a 7.5 percent rise in second-quarter profits. This figure surpassed average forecasts from a Reuters poll of banks and brokerages.
Q.How much did BMW's earnings before interest and tax (EBIT) reach in the second quarter?
How much did BMW's earnings before interest and tax (EBIT) reach in the second quarter?
BMW's earnings before interest and tax (EBIT) for the second quarter stood at 2.92 billion euros. This was higher than the average forecast of 2.82 billion euros.
Q.What was the operating margin for BMW's automotive business in the second quarter?
What was the operating margin for BMW's automotive business in the second quarter?
The automotive business posted a second-quarter operating margin of 9.7 percent. This represents an increase from 9.5 percent in the same period last year.
Q.What is BMW's updated forecast for its automotive segment revenues for the full year?
What is BMW's updated forecast for its automotive segment revenues for the full year?
BMW now anticipates a solid increase in revenues for its automotive segment for the full year. This revised forecast follows their strong second-quarter performance.
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