BMW posted 8.8% drop in EBIT in second quarter 2013

Article by Anita Panait, on August 1, 2013

BMW Group logged an 8.8-percent dive in earnings before interest and taxes (EBIT) in the second quarter of 2013 to EUR2.07 billion ($2.75 billion), compared to EUR2.27 billion in the same period in 2012, as spending on new models offset higher sales. BMW said in a statement that its revenues for the quarter grew 1.8 percent to EUR19.6 billion, thanks to a 6.6-percent hike in car sales.

According to BMW, its automotive division posted a 13-percent dive in second-quarter EBIT to EUR1.76 billion in line with expectations. The German carmaker said that EBIT drop was primarily due to increased spending on fuel-efficient technology as well as discounts in markets in Europe. The carmaker auto margin in the second quarter of 2013 dropped to 9.6 percent from 11.6 percent in the same period in 2012. BMW said that its auto division’s profit margin for 2013 will be between 8 percent and 10 percent of sales.

BMW chief executive CEO Norbert Reithofer said in a statement that the carmaker was able to achieve a strong second-quarter performance despite the “headwinds on many automobile markets in Europe," adding that German company's automotive margin was "at the top end of our targeted range."

Reithofer expects the carmaker’s pre-tax profit for 2013 to be similar to the EUR7.82 billion posted in 2012, despite a possible increase in vehicle sales, as BMW spend large amount of money for new technologies and models as well as in its production network.

According to BMW Chief Financial Officer Friedrich Eichiner, the investments will place a EUR1 billion ($1.33 billion) net burden on the carmaker's books in 2013, something that cannot be offset by cost-cutting. He noted that BMW will make more investments in the second half of the year. [source: Bmw]

Topics: bmw

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries