Germany automaker BMW says second-quarter net profit slid nearly 33 percent and it has abandoned its yearly profit forecast, blaming a drop in U.S. sales, rising costs for raw materials and the strong euro.
The Munich-based company is the world's biggest maker of luxury cars. It said Friday it earned euro507 million (US$791.5 million) in the April-June period, down 32.7 percent from last year.
Sales fell half a percent to euro14.6 billion (US$22.8 billion) in the quarter compared with a year earlier.The company has revised its earnings forecast. Chief Executive Norbert Reithofer says BMW now expects pre-tax return on sales for the year of at least 4 percent.The news spooked investors, who sent the company's shares plunging before they leveled off to euro26.90 (US$41.89), down 6.9 percent.
The Munich-based company is the world's biggest maker of luxury cars. It said Friday it earned euro507 million (US$791.5 million) in the April-June period, down 32.7 percent from last year.
Sales fell half a percent to euro14.6 billion (US$22.8 billion) in the quarter compared with a year earlier.The company has revised its earnings forecast. Chief Executive Norbert Reithofer says BMW now expects pre-tax return on sales for the year of at least 4 percent.The news spooked investors, who sent the company's shares plunging before they leveled off to euro26.90 (US$41.89), down 6.9 percent.
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