BMW’s profit down 2.9 percent due to higher taxes, sales and earnings up

German luxury carmaker BMW’s second-quarter net profit fell 2.9 percent to 2.96 billion euros (CZK 71 billion). This was mainly due to higher taxes. Revenues, on the other hand, rose thanks to growth in car sales.

Sales growth

Sales increased by seven percent to 37.2 billion euros. The automotive division’s sales rose 5.4 percent and the motorcycle division’s 14.4 percent. Vehicle deliveries increased 11.3 percent to 626,726.

The carmaker said it was increasing investment in electrification faster than planned. But Chief Executive Oliver Zipse told a news conference that it was too early to set a date for the end of production of internal combustion engine cars. Volkswagen and Mercedes-Benz, for example, have already taken this step. Zipse has long been a promoter of investment in a range of technologies that reduce carbon dioxide emissions.

Carbon neutrality

“There is no indication that the world is giving up on internal combustion engine vehicles,” Zipse said, pointing out that of the major markets, only Europe has set an end date for the sale of these cars. BMW also pointed out that sales of internal combustion engine cars in major markets such as China and the US are still strong.

At the same time, BMW raised its annual sales and profit margin outlook for the carmaker. The operating profit as a percentage of sales in the passenger car division is now expected to be in the range of nine percent to 10.5 percent instead of the previously reported eight percent to 10 percent. Vehicle deliveries are expected to grow at a solid pace, the carmaker had originally forecast a moderate growth. However, it also warned that supply chain issues and inflation would continue to have a negative impact on the business.

Source Czech Press Office

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

Golden Brokers Review

Golden Brokers Limited was founded in 2018, it is...

Real Estate ETFs: A Practical Guide to REIT Exposure Through Funds

Real estate has long attracted investors looking for rental...

Musk reportedly invested a billion dollars in the Skydance media group

American billionaire Elon Musk has invested roughly one billion...

Meta increases profit and revenue, to issue new class of shares to finance AI investments

Meta Platforms - the American internet company increased its...

The US dollar is weakening, with doubts surrounding AI behind its decline

The US dollar is weakening today. According to Reuters,...

European stocks fall amid concerns over economic impact of protests in France

European stocks are falling after the opening of trading....

Robotics Stocks: A Framework for Finding Real Automation Exposure

Robotics is becoming an increasingly important investment theme as...
spot_img

spot_imgspot_img