MUNICH (dpa-AFX) - German luxury carmaker BMW AG (BMW.L, BAMXF.PK, BAMXY.PK) reported Thursday lower profit in its second quarter, while revenues increased with higher deliveries. Further, the company confirmed its targets for fiscal 2019. BMW shares were trading higher in Germany.
For fiscal 2019, Group profit before tax is expected to be significantly below the previous year's level. Without the effect of the provision for the ongoing antitrust proceedings, the target range for the EBIT margin of 6 percent to 8 percent has not changed. Since the provision has a negative impact on the EBIT margin, BMW is expecting a margin between 4.5 and 6.5 percent in the Automotive segment for 2019.
BMW noted that with in a stable business environment, its ambition is to attain an EBIT margin in the range of 8 to 10 percent.
BMW Group said it is confident of its ability to achieve volume growth in the Automotive segment. Exceptional customer demand for Cullinan continues, resulting in a strong order book, already stretching into the first quarter of 2020.
Further, by the end of 2022, the company intends to save more than 12 billion euros through efficiency-boosting measures.
For the second quarter, group net profit declined 28.7 percent to 1.48 billion euros from 2.08 billion euros in the prior year. Earnings per share was 2.21 euros, down from 3.12 euros last year.
Group profit before tax amounted to 2.05 billion euros, down 28.4 percent from last year. Profit before financial result or EBIT declined 19.6 percent to 2.201 billion euros, reflecting upfront expenditure for future mobility. The second-quarter EBT margin came in at 8.0 percent, down from 11.5 percent last year.
Group revenues for the quarter, however, rose 2.9 percent to 25.72 billion euros from 24.99 billion euros last year.
Automotive segment revenues totaled 22.62 billion euros, 1.9 percent higher than last year.
BMW vehicle sales comprised 647,504 BMW, MINI and Rolls-Royce premium vehicles, a growth of 1.5 percent from 637,878 units last year.
The company said the positive development was largely influenced by the contribution of the BMW Brilliance Automotive joint venture in China.
In Germany, BMW shares were trading at 67.74 euros, up 1.36 percent.
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