BMW, the renowned German automaker, released its second-quarter earnings on Thursday, exceeding expectations and demonstrating resilience in a challenging market. Here are the key highlights from the report:
Net Profit
Despite a slight decline, net profit attributable to shareholders stood at €2.81 billion ($3.07 billion) for the quarter, compared to €2.84 billion in the same period last year.
Revenue
BMW witnessed a significant increase in revenue, reaching €37.22 billion, up from €34.77 billion in the previous year. This robust figure surpassed the expectation of analysts, who predicted sales of €36.79 billion.
EBIT
Earnings before interest and taxes (EBIT) witnessed substantial growth, rising to €4.34 billion from €3.43 billion in the second quarter of 2019. Analysts had forecasted EBIT of €4.26 billion for this quarter.
Factors Behind Performance:
Tough Comparison
The marginal decline in net profit can be attributed to a one-time windfall from its Brilliance Auto joint venture in the previous year, according to the company's statement.
Price Discipline
BMW's Chief Financial Officer, Walter Mertl, emphasized the crucial role of price discipline in mitigating the impact of high raw-material costs and warranty expenses. During an earnings call, Mertl reassured investors that their pricing strategies remained stable and positive.
Electric Vehicles Drive Growth
BMW experienced significant growth in its fully-electric vehicle segment, which accounted for approximately 13% of sales during the first half of the year - a notable increase from 6.5% in the same period last year.
BMW's strong performance in the second quarter underscores their ability to navigate challenging market conditions while remaining committed to innovative and sustainable mobility solutions.
