BMW operating profit declines in second quarter, but less than expected
Frankfurt — BMW reported a smaller-than-expected 6% decline in second quarter operating profit on Thursday while brushing off concerns about new anti- pollution rules and international trade tension, which caused rival Daimler to warn on profits. The German car maker said higher spending to develop electric and autonomous cars and currency headwinds weighed on earnings before interest and taxes, which fell to €2.74bn but topped the €2.69bn expected by analysts. “At times when others are struggling, they are rock solid, and they don’t seem to have an issue with WLTP,” Evercore ISI analyst Arndt Ellinghorst said, referring to the new worldwide harmonised light duty vehicles test procedure. Evercore said the second-quarter results were solid if unspectacular. BMW’s automotive ebit margin narrowed to 8.6% from 10.1% a year earlier while vehicle deliveries rose 0.7%. Adjusted for comparability, BMW’s automotive margin came in at 9.3% versus 9.2% for Volkswagen’s (VW’s) Audi brand and 9.6...
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