BERLIN (Reuters) – BMW (ETR: ) reported lower-than-expected revenue margins at its core auto unit within the second quarter as intensifying competitors and weak demand in China damage the posh carmaker’s gross sales.
The German automaker’s automotive enterprise earnings earlier than curiosity and tax (EBIT) margin fell to eight.4% from 9.2% within the year-earlier interval, beneath analysts’ expectations of 8.7%, in keeping with a company-compiled consensus.
BMW additionally famous that funding ranges have been excessive, with the automaker’s report spending on mannequin modifications and electrical automobiles anticipated to peak this 12 months.
The corporate confirmed steering for 2024 and mentioned the group’s pre-tax earnings fell barely resulting from increased prices associated to analysis and improvement, manufacturing and personnel.
BMW mentioned in a press release that it expects China’s financial state of affairs to stabilize within the third quarter.
