MUNICH (dpa-AFX) - German automajor BMW Group (BMW.L, BAMXF.PK, BAMXY.PK) reported Thursday lower profit in its second quarter, hurt by weak revenues and deliveries.
Further, the company maintained fiscal 2026 outlook, which was trimmed in mid-June citing negative development in China, and impact of conflict in Middle East, among others.
In addition, BMW Group said it has reached an agreement with the Works Council on an extensive workforce restructuring program including voluntary severance packages.
The move is inline with its plan to accelerate and intensify measures to tackle enduring changes in the operating environment.
For the full year 2026, the company continues to project significant decrease in group profit before tax from the previous year.
Automotive Segment EBIT Margin is still projected in the corridor of 1 percent to 3 percent, with slight decrease in segment deliveries.
In the second quarter, the company noted that the sharply negative market development in China, intensified competition, particularly in the Asia-Pacific region, and the consequences of the continuing conflict in the Middle East clearly impacted its business performance.
Quarterly net profit plunged 34.9 percent to 1.200 billion euros from 1.842 billion euros last year. Earnings per share declined 28.1 percent to 2.05 euros from 2.85 euros a year ago.
Group pre-tax earnings came in at 1.697 billion, down 35.1 percent year-over-year.
Profit before financial result or EBIT fell 38.7 percent from last year to 1.631 billion euros, and EBT margin of 5.4 percent dropped 2.3 percentage points from last year's 7.7 percent.
Revenues fell 7.9 percent to 31.259 billion from 33.927 billion in the prior year. Increased competitive pressure and lower sales volumes impacted the year-on-year comparison.
The BMW Group delivered a total of 590,947 BMW, MINI and Rolls-Royce vehicles in the quarter, down 4.9 percent from last year.
BMW volume was down 7.7 percent and Rolls-Royce fell 11.5 percent, while MINI climbed 17.1 percent.
Motorcycles deliveries fell 1.9 percent from last year to 60,112 units.
BMW Group delivered a total of 116,807 fully-electric vehicles between April and June, up 5.2 percent from last year.
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