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BMW Reports Profit Plunge of Over a Third Amidst Sales Slump
🇩🇪 Germany /Economy & Trade

BMW Reports Profit Plunge of Over a Third Amidst Sales Slump

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Ongoing story
  • BMW reported a significant profit drop of 35% in the second quarter, earning only 1.2 billion euros after taxes.
  • Revenue also declined from 34 billion to 31 billion euros, with job cuts of 8,000 previously announced.
  • The automotive division saw an even steeper decline, with operating profit falling over 60%, leading BMW to earn more from financial services than car manufacturing.

German automaker BMW has announced a sharp decline in profits for the second quarter, with earnings after taxes falling by 35% to 1.2 billion euros compared to the previous year. Revenue also saw a notable decrease, dropping from 34 billion euros to 31 billion euros. This financial downturn follows the earlier announcement of 8,000 job cuts.

The automotive sector within BMW experienced a particularly severe downturn, with operating profit plummeting by over 60% to 629 million euros. This significant drop has created an unusual situation where the company's financial services division generated more profit than its core car manufacturing business during the quarter.

Sales in China, the world's largest automotive market, have been a major factor in BMW's struggles. The company's sales in China declined by nearly a third in the second quarter amid intensifying competition. The article notes that this is a developing story.

DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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